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While the crypto community remains uncertain about Ripple’s future following the SEC’s recent lawsuit against Ripple, several on-chain metrics estimate that XRP is bound for a bullish impulse.
XRP Tumbles Following SEC’s Charges
XRP has seen its price crash over 65% in the past two months.
That sell-off came after the U.S. Securities and Exchange Commission (SEC) filed an action against Ripple. The regulatory watchdog claims that the company raised over $1.3 billion through an unregistered and ongoing digital asset securities offering.
“We allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors,” said Stephanie Avakian, Director of the SEC’s Enforcement Division. That deprived investors of XRP disclosures and other protections, she says.
Following the announcement, several cryptocurrency exchanges decided to suspend XRP trading activity due to the SEC’s charges. The move added fuel to the downward pressure that began on Nov. 24, pushing this cryptocurrency’s price to a low of $0.17.
XRP US dollar price chart
XRP/USD on TradingView
Despite the uncertainty around XRP, it was able to rebound and test the $0.33 barrier. Now, several on-chain metrics suggest that as long as the $0.22 support continues to hold, prices might recover some of the lost ground and break through the overhead resistance.
On-Chain Metrics Turn Bullish
When looking at XRP’s network growth, the bullish thesis holds.
Since late December, the number of new daily XRP addresses has steadily increased. At that time, roughly 2,050 addresses were joining the XRP network on a daily basis around. This number has skyrocketed by nearly 240% to hit a high of 6,900 as of Jan. 11.
The network’s ongoing expansion is a positive sign for price recovery in the near future. Usually, a sustained increased in the number of new daily addresses is a leading indicator of appreciating prices.