XRP Surged by 8% : Here’s Why
Ripple’s XRP (XRP) price has surged by more than 70% since hitting a low of $0.382 a month ago. Today, XRP has reached $0.658, its highest point in four months.
This price increase aligns with the growing accumulation among its wealthiest holders, known as “whales.” Additionally, the rebound follows patterns seen in pre-2017 rally fractals, indicating that XRP may have further growth potential in the coming months.
Contributing to XRP’s price surge are the speculations of a settlement in the long-standing Ripple lawsuit with the SEC. A closed-door meeting is scheduled for Thursday after the regulator canceled the previous one.
The upcoming token unlock on August 1 where Ripple ecosystem will release 1 billion XRP tokens as part of its monthly schedule since 2017 also contributed to the XRP’s price surge. The said coin release aims to ease pressure on the token’s supply. However, historically, the token unlock can sometimes lead to a price stalemate or a slight decline in XRP’s value.
Meanwhile, on-chain data analytics firm Santiment observed a surge in XRP holdings among addresses by at least 10,000 XRP tokens, The accumulation by large holders can sway retail sentiment, as retail investors often interpret the actions of whales as a signal of potential positive price movements, potentially increasing buying pressure and driving prices higher.
So what can we expect for XRP in August?
Given the dynamics of the financial market, XRP may have reached its peak in its performance this month, potentially leading to a slight reversal in August.
However, any settlement in the Ripple vs. SEC case could serve as a new catalyst for the coin. Furthermore, trends such as the surge in XRP whale activity could persist, driving further long-term gains.
Historically, the month of August has an average growth rate of 2%, suggesting that XRP may demonstrate greater resilience in the coming month.
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