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3 Reasons to Watch XRP Closely as Price Performance May Surprise You

Thu, 08/18/2022 - 10:39
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Arman Shirinyan
XRP may look anemic, but potential price increase would be surprise for majority of market
3 Reasons to Watch XRP Closely as Price Performance May Surprise You
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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In the last 20 days of trading, XRP was showing one of the lowest periods of daily volatility in the history of the asset as the price range of the coin has not changed since the beginning of August. But the plunging volatility could be a sign of an upcoming breakthrough.

Historical importance of low volatility

With the low average daily volatility, assets may attract the attention of investors who will accumulate an asset, which is more profitable to do when an asset is moving in a certain range.

XRP Data
Source: TradingView

Because of the lack of trading volume, we can tell that no major whales or investors entered the XRP market to accumulate some coins or decrease their average position size. But at the same time, we should not forget about the OTC trading that goes past volume indicators.

Ripple's success in courts

While Ripple and XRP remain two different projects and companies, the success of Ripple still affects the performance of the coin positively. Previously, U.Today reported that Ripple claimed mischaracterization of the judge's ruling by the SEC.

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As numerous experts noted, the relevance of the email draft will provide more regulatory clarity and play in favor of the company's case in court. 

XRP reached bottom

According to the daily chart of the asset, XRP has most likely bottomed out as the price movement of the assets remained flat for the last 70 days, which can be considered a consolidation ahead of a reversal.

The asset moves above the 50-day moving average and is currently sitting at around $0.37, with numerous unsuccessful attempts to break past the $0.4 threshold.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.