Ripple gained 5% after recovering from the last support at $ 0.26. Right now, XRP seems to be on a rescue mission that could send it massively to higher price levels, perhaps even $ 0.6.
The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc. on December 22 for the unregistered sale of securities, targeting Ripple Labs CEO Bradley Garlinghouse and founder Christian Larsen, two of its top executives. . Due to the lawsuit, XRP dropped to $ 0.17, testing very low levels.
The SEC’s complaint was filed in Manhattan federal district court, Ripple and its two top executives were charged with violating the provisions of the 1993 Securities Act. The lawsuit has yet to be concluded, and the fate of Ripple and XRP is currently uncertain. XRP’s bullish scenario has been powered by various on-chain data, including Santiment’s network growth. Since December 28, the number of new addresses joining the XRP platform has increased significantly, reaching 7,526 on January 8th. Although a small retracement has been noted in the past few days, recovery continues and new addresses are now at the 6,900 level. The increase in network growth of an asset is usually a bullish signal, so there seems to be a possibility for XRP to move higher.
According to Santiment data, XRP whales are also experiencing a buying spree. Wallets with 10,000-1 million and 1-10 million XRP have seen a significant increase since December 28. In other words, whales take advantage of low prices to fill their bags in anticipation of a big recovery.
In addition to these, the MVRV indicator also encourages positive thinking. The MVRV is used to determine if the coin is overvalued or undervalued for its “fair value”. According to this indicator data, XRP is currently oversold and trading below market cap; Therefore, the potential for recovery is quite high.
Technically speaking, we can say that staying above the 50-day moving average is very important for XRP. If the price cannot defend this support, the bullish outlook will come out of the picture.