Will this factor limit XRP’s upside momentum?

Bitcoin is at present trading above $ 43,400 and ETH is round $ 3,000, which is over 66% of market cap. With the highest two property trending up, the final sentiment in direction of altcoins is analogous. However, it seems that XRP shouldn’t be receiving this supply. While the asset was up ~ 10% on Aug 7, it was solely 0.5% 9 days in the past.

Does XRP have upside potential?

XRP / USDT | The supply: Trade view

Just judging the each day chart of XRP and analyzing the final pattern can’t affirm that the pattern is bullish. As famous above, XRP solely rose considerably on Aug. 7, whereas beforehand consolidating aggressively close to $ 0.72. Ideally, XRP ought to take a look at quick resistance at $ 0.9. But on the time of writing, the price remains to be below $ 0.8.

XRP price (inexperienced) and DAA price deviation (pink) | Source: Santiment

The on-chain relationship between the variety of lively addresses and the price doesn’t generate a optimistic sign. The variety of lively addresses fell to a 3-month low, whereas the price seems to be rising. Usually this is a promote sign, however it is usually extra probably that it’s a false sign.

On the flip aspect, one clear pattern is that XRP holders have been accumulating in retail since early 2021. However, addresses holding between 1 million and 10 million XRPs lately fell after the report hit a excessive in June 2021.

Address incorporates XRP | Source: Santiment

Lawsuits with the SEC hinder funding?

On December 22, 2020, the Securities and Exchange Commission (SEC) filed a lawsuit towards Ripple Labs and two executives, accusing them of elevating greater than $ 1.3 billion by an unsecured sale of securities. The occasion had a direct influence on the XRP price. While Bitcoin, ETH and the complete crypto market rebounded, XRP is the one token that has seen a pointy decline.

For the previous few months, Ripple – SEC has had a forwards and backwards argument. Ripple Labs has put collectively outstanding arguments to counter the SEC’s allegations, and its influence on price is nowhere to be seen in 2021.

XRP continues to hit a 2021 excessive of $ 1.96, additionally a 3-year excessive. Overall, the SEC lawsuit remains to be unfavorable for XRP costs for now, however latest proof suggests it will not create a unfavourable outlook for XRP costs for an additional 6-7 months.

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