XRP’s price rose for two consecutive weeks as investors cheered the end of the Ripple vs SEC case. Ripple jumped to a high of $2.5873, up by over 35% from its lowest level this month, giving it a market cap of $140 billion.
XRP Transaction Counts Have Crashed
The XRP price performed strongly last week after the SEC ended its lawsuit against Ripple Labs. While this was an important event, the coin did not form a God candle because most investors and analysts expected it to happen.
Ripple’s price then dropped slightly after the number of XRP Ledger transactions pumped and then fell. Data by Santiment shows that the number of XRP transactions jumped to 1.83 million on March 19 after the Ripple vs. SEC case ended. Subsequently, XRP transactions dropped to 812 on Sunday, its lowest level since March 1, indicating that network activity has waned.
The surge in transaction count coincided with an increase in whale activity. The total whale count rose to 720 on March 19, then retreated to 92 on Monday.
Meanwhile, the mean dollar invested age (MDIA) indicator has continued to drop in the past few months. The 365-day MDIA indicator has moved to 515, down from the October high of 2,000. Similarly, the 180-day MDIA indicator has retreated to 408 from the October high of 2,253.
The MDIA is an important number that looks at the age of all coins weighted by their purchase price. A declining MDIA indicates that holders of older coins are selling their tokens.
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Looking ahead, the next key catalyst for XRP’s price will be the potential Securities and Exchange Commission (SEC) approval of the XRP ETF on Polymarket. The odds of the approval have jumped to 87%, their highest point on record.
Moreover, a crypto analyst has outlined a bullish case for XRP’s price. In a long thread, John Squire noted that Ripple is at the intersection of Bitcoin and Ethereum. He argued that XRP solves what Bitcoin wanted to solve with a store of value and Ethereum with smart contracts. Instead, XRP does all this with speed, scalability, and near-zero fees.
XRP Price Technical Analysis
The weekly chart shows that Ripple’s price peaked at $3.40 in January before retreating to key support at $1.9635. This was notable since it was the highest swing in April 2021. That price was the upper side of the cup and handle pattern, meaning it has formed a break and retest pattern.
XRP’s price has remained above the 50-week and 100-week moving averages. Therefore, the coin’s outlook is neutral at this stage, with the key point to watch being $1.9635. A move below $1.9635 will validate the neckline of the head-and-shoulders pattern on the daily chart. A break below that level will point to more downside to $1.
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