Ripple’s XRP token just experienced a double digit surge in the past days, becoming the top performer in the market.
US federal judge Analisa Torres ordered Ripple Labs to pay a $125 million civil penalty, effectively ending their prolonged legal battle with the Securities and Exchange Commission.
Trading activity: increased. Bullish sentiment: activated.
At the time of writing, XRP, the seventh-largest cryptocurrency by market capitalization, is trading at $0.60.
This price hike is accompanied by a visible increase in daily trading volume, which has exceeded $5 billion over the past day, marking a quite impressive 202% surge.
The rise in both price and trading volume signals a bullish market sentiment, reflecting heightened demand for XRP.
This demand is likely to continue driving the price up. Another positive factor that the profitability of XRP transactions over the last 24 hours has encouraged more trading activity too.
An analysis of XRP’s on-chain transaction volume shows that most traders have been making profits, with the current profit-to-loss ratio at a two-week high of 1.92.
This means that for every loss-making transaction, there are 1.92 transactions yielding profits.
Whales are accumulating
In the past 24 hours, there has been a clear increase in XRP accumulation by whales.
Data from Santiment indicates a 2% rise in the number of XRP whales holding between 1,000,000 and 10,000,000 tokens, bringing their total to 1,629, the highest since August last year.
What’s going on with the price?
An analysis of XRP’s price movements on a 12-hour chart also suggests the possibility of continued gains.
The Directional Movement Index (DMI) shows a bullish signs, and this could means increased buying pressure and growing market strength.
Also, the Moving Average Convergence/Divergence (MACD) indicator for XRP has shown another bullish signal, with the MACD line crossing above the signal line.
This crossover suggests that XRP’s short-term momentum is stronger than its long-term momentum, prompting traders to consider buying the token.
If the demand for XRP remains strong, and experts think after the court win it will, its price could reach a five-month high of $0.66. But if profit-taking activities increase, the price may drop towards $0.56.
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