XRP exudes confidence before SEC verdict as March gains cross…
- XRP’s month-long uptrend may continue as indicators showed no signs of slowing down.
- Profit-taking was close to a two-year high, but the current market condition calls for wariness.
Following an excellent monthly performance that distinguished it from the rest of the crypto market, Ripple [XRP] could be faced with an imminent correction. Needless to say, XRP’s 53% hike in the last 30 days was unprecedented. However, the drums of a possible victory over the SEC played their part in renewing buyers’ confidence.
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Traders are scooping in…
The rise was also vital in helping XRP reach its highest profit-taking activity since August 2021. This confirmed how underwhelming XRP’s performance has been for a long while. According to Santiment, the daily on-chain transaction volume in profit to loss was at 1.188.
Source: Santiment
Although selling pressure most times leads to a decrease in asset price, XRP seemed like it was committed to defying the trend. At press time, the token value had increased another 18.17% in the last 24 hours.
As per the technical outlook, the Chaikin Money Flow (CMF) showed that the accumulation and distribution of the token have significantly heightened. At press time, the CMF was in the positive range, closing at 0.18.
This value being above zero signified that strength for XRP has developed into an overbought region. Further, the Directional Movement Index (DMI) showed that the dominant forces were still behind the price uptrend.
As of this writing, the +DMI (green) was at 41.11 as the Average Directional Index (ADX) solidified the movement at 41.79. The ADX (yellow), if positioned above 25, means that an asset’s directional strength had reinforced support. However, the -DMI (red) was in a massive negative swing. This implied that sellers had not penetrated the buying pressure.
Source: TradingView
How much are 1,10,100 XRPs worth today?
Put up the call for security and caution
While XRP rose to a five-month high, Ripple’s CTO David Swchartz took to Twitter to put a nail on the discussion about the token being labeled as a security. Schwartz, in addressing the conversation, noted that the Ripple ecosystem was now open source. Hence, the token could not be considered a security since users do not have to depend on a third party to access the XRP Ledger (XRPL) anymore.
I think the server code becoming open source was the point where people no longer had to rely on Ripple to maintain the ledger.
— David “JoelKatz” Schwartz (@JoelKatz) March 28, 2023
However, with XRP’s intraday price at $0.57, short-term investors might need to exercise caution in expecting more gains. One metric that displayed this position was the Market Value to Realized Value (MVRV) Z score. The metric reveals if an asset is undervalued or otherwise, depending on the current cycle. Although the MVRV was -0.59 at press time, its monumental rise calls for vigilant rationale.
Source: Santiment
