Last week, Ripple price dropped by more than 25 per cent following reports that FTX would be going out of business. The drop was also fueled by worries in the markets that something big was in the offing following reports that indicated that Ripple’s active addresses had dropped by 30 per cent in under 24 hours.
Reports, which first appeared in the media last week, indicated that over $190 million worth of Ripple had been transferred from wallets to exchanges or from wallets to wallets on November 7. This included a huge transfer of around 29 million ripple tokens worth $13.52 last week, which was transferred from an unknown wallet to Bitstamp. The transaction was followed by another huge transfer of 35 billion ripple tokens worth $16.55 million.
Ripple has also faced legal challenges for the past few years, following the SEC’s decision to sue them following their sale of XRP in late 2020, which the regulatory body considered as securities. The case, which has dragged in court for the past two years, has gained traction in the past few months, as it concludes.
Although most investors have grown confident that Ripple is likely to win the case, the slim chance that the case goes against them is likely to see Ripple’s price crashing, which has put a lot of investors on edge.
Despite Ripple’s problems and last week’s 27 per cent drop in value, its price has opened strongly this week, surging by 12 per cent at press time. Today, Ripple is already up by a percentage point, and intraday trading shows a high likelihood that prices will continue to trade upwards.
The recent price action also shows a high likelihood that we might see Ripple’s price continue with the bullish trend in the next few trading sessions. Therefore, I expect Ripple to hit and trade above the $0.41 resistance level. For the long term, there is a high likelihood we might see Ripple trading above $0.5, especially if the SEC case collapses. A trade below $0.35 will invalidate my bullish analysis.
This post was last modified on %s = human-readable time difference 13:46