XRP price reached a 10-day peak of $0.62 on August 20, 2024. On-chain data reveals that XRP traders are increasingly shifting towards long-term savings following Ripple’s favorable ruling against the US SEC.
XRP Price Breaches Critical $0.61 Resistance
In the past two weeks, XRP has outperformed major assets like Bitcoin (BTC) and Ethereum (ETH). The recent ruling in favor of Ripple in its ongoing lawsuit against the US SEC remains a significant bullish catalyst. This lenient $125 million fine bolstered investor confidence, fueling a continued uptrend in XRP’s price over the last three weeks.
The XRP/USD daily chart above illustrates how XRP’s price surged from $0.43 on August 5 to $0.615 on August 20. This 42.2% increase coincided directly with the favorable ruling delivered on August 6.
The consistent price appreciation reflects a shift in investor sentiment, as the end of the lawsuit that began in 2020 has encouraged more long-term investment in XRP. The bullish momentum continues to drive XRP’s market value, showcasing a decisive change in investor behavior.
XRP Traders Shift 100 Million XRP Worth $60M into Long-term Storage
The ruling has triggered notable bullish changes in investor behavior. On-chain data indicates a significant uptick in the number of investors adding XRP to their long-term savings portfolios. This shift is evident in the declining exchange reserves as investors move their XRP holdings into cold storage.
CryptoQuant’s exchange reserves chart shows the total number of assets held in exchange wallets. Historically, a reduction in exchange reserves signals that investors are increasingly leaning toward long-term savings.
At the beginning of August, investors held a total of 3.1 billion XRP coins in short-term trading wallets on exchanges. However, following the ruling, large quantities of XRP have been transferred to long-term storage, significantly contributing to the 42% price rally over the past three weeks.
As of August 21, exchange reserves have dropped to 3.01 billion XRP, indicating that over 100 million XRP have been moved to cold wallets in August 2024. Valued at $0.61 per coin, this suggests that traders have withdrawn over $60 million worth of XRP from the short-term market supply. This decline in exchange reserves is a bullish indicator, as it reflects growing investor confidence in XRP’s long-term potential. If this trend persists, XRP could be poised for further upside as broader market sentiment improves.
XRP Price Forecast: $0.65 Target Now in Focus
The technical indicators suggest that XRP is on track to test the $0.65 resistance level in the near future. The Bollinger Bands indicate that XRP is trading near the upper band, suggesting potential upside momentum. Meanwhile, the Parabolic SAR is trending below the current price, further signaling bullish conditions.
However, traders should remain cautious of a potential pullback if XRP fails to break the $0.65 resistance. Immediate support lies at $0.58, with stronger support at $0.55. If XRP breaks above $0.65, it could pave the way for a move towards $0.70, while a failure to maintain current levels could see a retest of $0.58.
Overall, with strong bullish signals and decreasing exchange reserves, XRP appears well-positioned for a continued rally. However, traders should monitor key resistance levels closely as XRP navigates its next price targets.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
