- XRP has shown resilience amid a declining crypto market, driven by strong buying activity from both retail and institutional investors, with the token potentially poised for a rally if it can break through key resistance levels.
- Meanwhile, the SEC’s delayed filing in its appeal against the Ripple case is considered normal in litigation, but the outcome could still significantly impact XRP’s future price movement.
The cryptocurrency market has seen a wave of volatility recently, but XRP (Ripple’s native token) has managed to stand out, showing significant resilience in the face of declining prices across the broader market. The token has experienced an impressive rise, sparking conversations among investors and analysts alike. With buying activity growing across both retail and institutional sectors, XRP is showing no signs of slowing down—despite challenges such as the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
Buying Pressure Fuels XRP’s Green Outlook
XRP has seen remarkable buying pressure recently, as retail and institutional investors continue to show strong interest. In fact, global XRP investment products saw inflows exceeding $41 million just last week, according to CoinShares data. This surge in buying activity is notable when contrasted with the declining performance of many other top cryptocurrencies. Over the past week, XRP has been one of the few tokens in the green among the top 20 cryptocurrencies by market capitalization.
On top of that, XRP’s positive price movement is underpinned by net outflows across top exchanges such as Binance, Bybit, and OKX. These outflows signify rising bullish sentiment, contrasting with crypto ETFs where outflows typically reflect a decline in momentum. However, while XRP’s performance has been impressive globally, U.S. investors seem to be exercising more caution, with Coinbase recording a significant $65 million in inflows.
Legal Delays: A Normal Part of Litigation
Despite XRP’s bullish outlook, all eyes are also on the ongoing legal dispute between Ripple Labs and the SEC. The SEC’s delayed filing of its opening brief for the appeal against Judge Analisa Torres’ ruling has raised questions. Yet, according to retired securities lawyer Marc Fagel, delays in filing briefs are common in litigation. Fagel emphasized that it’s rare for briefs to be filed ahead of their due date, stressing that this is a normal part of the legal process.
As the SEC’s January 15 deadline approaches, many within the XRP community wonder if the SEC may abandon the appeal altogether. However, the incoming leadership changes at the SEC, including a potential shift under the administration of former pro-crypto SEC Commissioner Paul Atkins, could impact the case’s trajectory.
XRP’s Path to New Heights
Looking ahead, XRP has broken above the upper boundary of a bullish pennant pattern, a technical indicator suggesting that a potential rally may be in the cards. If the token can maintain its position above this level, a significant rally toward a new all-time high—potentially surpassing $4.50—could be on the horizon. However, XRP must first overcome a critical resistance at $2.90, its highest price in six years, before such a rally can occur.
While there are risks, including the potential for a decline to the $2.00 support level, current technical indicators suggest that the momentum is on XRP’s side. If XRP continues to hold strong, it could soon be on track for a remarkable breakout.
In conclusion, XRP’s continued resilience amidst a broader market downturn, coupled with legal developments and technical chart patterns, suggests that the token might be gearing up for an exciting journey ahead. Only time will tell, but for now, XRP investors are staying optimistic.
