Crypto NewsRipple (XRP)

Santiment paints a bullish picture for XRP, but that may not be the case

Of the XRP-Price is off to a shaky start to 2023 after falling sharply during the Asia Hours on Monday. The digital asset eventually rallied, but it remains shaky even now. A new report by Santiment shows that there is a bull case for the cryptocurrency could give. This bull case is tied to large XRP holders who have accumulated coins over the past six months.

A bull case for XRP

Santiment’s report begins by revealing that large investors holding between 1 million and 10 million XRP tokens have been aggressively expanding their pockets. Apparently, these investors have increased their collective bankrolls by 25% over the past six years. This now meant that they held more than 4 billion XRP.

Santiment points out that such accumulation trends were important as they are often observed during bear market bottoms. Basically, when these whales go on a buying spree, it’s when the price has already bottomed out bear market has reached.

So if history is anything and should have the same repercussions seen before, then it could mean that a bullish rally is imminent for the digital asset. Additionally, it explains that the MVRV 30 for the altcoin shows that short-term holders saw losses of 7% on average. So this suggests that these holders are reluctant to sell because they don’t want to take a loss.

This refusal to discard tokens and whales that increase their balances results in less supply entering the market while demand increases. Fundamental laws of economics will easily express this as a recipe for an asset price to rise, hence the bull case for XRP.

Santiment paints a bullish picture for XRP, but that may not be the case, Crypto Trading News

XRP price continues to struggle at $0.34 | Source: XRPUSD on TradingView.com

But what if this is not the case?

One thing for XRP holders to consider is the Securities and Exchange Commission lawsuit Ripple. This case is ongoing and continues to dampen the price of XRP. To know how much of an effect it had, while most cryptocurrencies in the market were making new all-time highs, XRP’s price had fallen and failed to even reclaim its own 2018 all-time high.

This shows that XRP will continue to struggle in the market until the case with the SEC is resolved. Furthermore, if the final judgment were to go against Rippled, then investors should expect the asset to decline quickly.

The only thing that can categorically determine if there is a bull rally for the altcoins would be a positive outcome for the Ripple case. Until then, the price of the digital asset is expected to trade sideways and underperform the broader crypto market.

Featured image of Outlook India chart from TradingView.com

Source: Crypto News Deutsch

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