Does XRP have a chance of a bullish breakout? The metrics and indicators say…
XRP’s price is twisting and turning by the day as new developments from the SEC vs Ripple case and market movements influence the controversial coin. A day ago, XRP was down by around 5%, but at press time, the sixth biggest crypto by market cap was trading at $0.4318 after rising by 5.30% in the past day but slipping by 3.77% in the last week.
Santiment says. . .
Whale transactions for XRP spiked as the market crashed last week, but it’s fascinating to note that whale transactions worth more than $1 million surged on 13 May and 17 May – even as XRP’s price was rising.
In the meantime, the Adjusted Price DAA Divergence fell dramatically, dropping from over 300% to less than 40% at press time. This suggests that the opportunity to buy the dip may be fast-shrinking – but also that a bigger rally could become.
On the other hand, the velocity metric for XRP showed that activity levels were down. In fact, velocity levels close to press time reached levels last recorded at the end of April. Overall, this tells us that not a lot of dip-buying activity was taking place.
That being said, two price indicators were bullish. The Bollinger Bands were wide apart, indicating upcoming volatility. However, XRP candles had crossed the lower band and were moving slightly upwards again – which means XRP is no longer being seen as an oversold asset.
Adding to that, the Relative Volatility Index [RVI] registered a value close to 60, which is a strong sign that future volatility could take XRP’s price higher.
Except, of course, there’s one more factor at play.
To be [security] or not to be?
The latest filings from the SEC’s lawsuit against Ripple revealed that the government agency was doubling down on its stance that documents related to the 2018 speech by the SEC’s former Director of the Division of Corporation Finance, William Hinman, were protected by the attorney-client privilege.
Though Ripple disagreed, the SEC’s statement from 18 May noted,
“Rather Director Hinman developed the Speech in his capacity as the Director of the Division of Corporation Finance (“Corp Fin”), in connection with issues he was facing in that position and through extensive consultation with SEC attorneys.”