After facing heavy selling pressure last week and slipping under $0.50, Ripple’s native crypto XRP showed signs of healthy recovery during the weekend. As of press time, XRP is trading 1.68% up at a price of $0.5299 and a market cap just above $28 billion.
On-chain data shows that the XRP whales are back into action while accumulating the dips. As per data from Santiment, the XRP Network is exhibiting subtle indications of recovery, and the current 4% increase in price seems to be backed by several prominent XRP holders.
Among these are 221 addresses that possess a substantial amount of XRP, ranging between 10 million to 1 billion tokens. Collectively, these addresses now hold 16.13 billion tokens, valued at approximately $8.71 billion.
Last week, Ripple’s XRP came under major selling pressure since the SEC submitted an interlocutory appeal in the XRP ruling. Interestingly, in their court filing last Friday, the SEC has left a hint that XRP could be a non-security.
“The SEC does not seek appellate review of any holding relating to the fact that the underlying assets here are nothing but computer code with no inherent value,” the filing notes.
Interesting that even the @SECGov is accepting that digital assets themselves are not inherently securities.
However, not entirely surprising as both Judge Rakoff and Judge Torres came to this conclusion in their respective cases. pic.twitter.com/OhwyzeaJWN
— Eleanor Terrett (@EleanorTerrett) August 18, 2023
Amicus Curiae attorney John E Deaton also shared his views on the SEC acknowledgment while adding: “I have to say there is no doubt 75k Ripple holders are a major reason the SEC is conceding this. We fought to have the judge actually write that the token itself is not the security. In fact, it was the first section in our argument in the brief.”
XRP Price Action
On the Daily Chart, XRP/USD was positioned below the resistance range of $0.5750 – $0.5900. The positive movement during the weekend helped it surpass the 200-day EMA. However, the cryptocurrency remained below the 50-day EMA, signaling short-term bearishness but longer-term bullishness.
Analyzing the 14-Day Relative Strength Index (RSI), the reading of 34.14 indicates a bearish sentiment. This RSI reading corresponds with the 50-day EMA, supporting the possibility of a decline below the support range of $0.4920 – $0.4780, with a potential target below $0.47. Nonetheless, if XRP manages to stay above the 200-day EMA, it could enable a bullish attempt to breach the resistance range of $0.5750 – $0.5900 and the 50-day EMA.