Will Ripple(XRP) Cross $1? Surprising Reasons To HODL XRP Now

Probability of Ripple(XRP) crossing $1 is very less in July 2023. However, there are quite a few things in its favor for the long term.

Ripple soared towards $1 on 13 July 2023 after the SEC declared a judgment which favored Ripple’s retail sales. The judgement helped Ripple remove any confusion regarding its retail sales of XRP. This caused bullish momentum across the crypto markets which gained more than $50 Billion dollars within a few hours. The move also made Ripple the 4th largest cryptocurrency by market cap.

Despite bullish momentum and gaining more than 85% in value to reach $0.89, Ripple did not cross $1. However, it consolidated near $0.8.

Let us use technical charts and on-chain data to figure out if the momentum has finished or will continue till XRP crosses $1.

Technical Analysis

Ripple(XRP) Daily Charts as on 14 July 2023
Ripple(XRP) Daily Charts as on 14 July 2023

As per technical data, XRP is currently in a overbought zone (RSI>70). Both RSI and MACD are at their peak levels. Since RSI is declining, it indicated that the euphoria might have ended and this may cause the price to come down. The price comes down as a result of profit booking where traders and seller begin to sell their holdings to gain a profit.

However, the trading volume has soared which shows that there has been broad market participation in the buying. Increased prices with an increased trading volume also show that the price gain will be of permanent nature and XRP does not seem to slide below $0.75 anytime soon.

Note: An overbought zone in cryptocurrency refers to a situation where the price of a particular asset has risen too quickly and is considered excessively high relative to its intrinsic value. It suggests that buying pressure has pushed the price beyond its sustainable level, potentially signaling an upcoming correction or reversal in the price trend.

On-Chain Analysis

The following data has been acquired by Santiment.

Increased Whale Transactions

The last week saw an increased whale activity in Ripple before the court decided in its favor. Whale accumulation shows that big investors are confident in its future. On 14 July alone, there have been more than 600 transactions above $100k.

This accumulation was going on since last couple of months. Since May 06, 2023 there have been an accumulation of 831 Million coins by large addresses (that hold between 100k-100m XRP). This move can be termed as “smart money”.

So Will Ripple Cross $1 in July 2023

Probability of Ripple crossing $1 is very less in July 2023. This is because after a gigantic rise of 85%+, there will be some profit booking. XRP price has already climbed down from $0.88 to $0.77. We expect the price to fall a little further till $0.75 or at max $0.7 after which it would be a decent buy for investment.

The reason why Ripple looks decent for investment because of the institutional usage of its ecosystem.

  • The XRP Ledger which is currently being used by several governments to digitize documents such as land records.
  • It can quickly settle international transactions which currently takes days through traditional means. Siam Commercial Bank (Thailand), Santander Bank (USA), Standard Chartered Bank (UK), Cuallix (Mexico) are currently using RippleNet to settle transactions and securing their systems.
  • Ripple ODL, which helps in cross border payments have already been in operation in India.

Regarding retail usage, Ripple provides one of the cheapest available blockchains that have a very less transaction fees. Though it charges $3 for creating new addresses, it still offers one of the most cost effective payment solutions for daily use.

Disclaimer The above analysis was done for educating our readers and should not be taken as financial advice. Viewer discretion is advised.

Dhirendra Chandra Das
Dhirendra Chandra Das

Dhirendra is a professional with dual degree MBA specializations in Finance and Marketing. He has a keen interest in finance and crypto. Starting his investment journey in Finance since 2015, Dhirendra has more than 8 years experience in Traditional Finance and 3 years experience in Decentralized Finance.

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