Ripple (XRP) could be about to have its moment and the only thing in the way of that is the SEC lawsuit.
However, the legal battle is approaching its conclusion and the market has been reacting positively.
Ripple and the U.S Securities and Exchange Commission (SEC) have been locked in a legal battle since late 2020.
The lawsuit which claimed that XRP was a security is now approaching its conclusion. The prevailing sentiment is that the final judicial ruling in the case will lean in favor of Ripple.
As such, many see this as a sign that XRP is finally about to be unleashed to achieve its full potential.
Among the analysists that are optimistic about XRP’s potential include David Stryzewski, the CEO of Sound Planning Group. He noted in a Ripple ETF could potentially be on the cards soon.
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The expectations of a favorable conclusion and other upcoming developments have been booting investor confidence. This is one of the main reasons behind the latest bullish XRP price action.
XRP Spot Flows Hit 10-Month High
Ripple (XRP) is experiencing a strong demand resurgence this week. For context, spot flows just hit their second highest inflows recorded in the last 10 months.
According to Coinglass, Ripple (XRP) inflows went as high as $117.22 million in the last 24 hours. This was as a consequence of the shift into positive flows in the last 3 days.
The spot inflows were also accompanied by robust demand in the derivatives segment.
For example, open interest rallied by 20.77% to $6.69 billion in the last 24 hours. Derivatives volumes were up by 76.27% during the same period.
For context, the spike in open interest in the last 24 hours marked a new ATH. This puts into perspective the level of demand that the cryptocurrency has been enjoying.
A confirmation of investor confidence as the legal battle nears its inevitable conclusion.
Ripple XRP Enters Into Price Discovery Once Again
The latest wave of Ripple (XRP) demand has already had a massive impact on price. So much so, that the cryptocurrency achieved a new ATH in the last 24 hours.
XRP broke through short term resistance at the $2.61 price level on Tuesday. The subsequent demand ensured that price rallied to a new high at $2.89 at the time of writing.
XRP notable experienced very low sell pressure indicating that holders remained optimistic about long term prospects. But what’s next for the XRP token?
XRP’s price action was almost overbought at the time of observation with the RSI sitting at 68. This may indicate that the cryptocurrency had room for more upside.
On the other hand, the recent new high could form a double top that can potentially lead to more downside. However, this will only happen in the event of another wave of sell pressure.
It is possible that Ripple (XRP) is currently in a “buy the rumor sell the news” type of situation. This is where price rallies ahead of a major development or announcement. Some profit taking is often observed once the event takes place.
