XRP (XRP) Price Breaches Critical $0.61 Resistance, Targets $0.65

XRP price reached a 10-day peak of $0.62 on August 20, 2024. On-chain data reveals that XRP traders are increasingly shifting towards long-term savings following Ripple's favorable ruling against the US SEC.

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XRP price soared to a 10-day high of $0.62 on August 20, 2024, continuing its strong rally following Ripple’s favorable ruling against the US SEC. On-chain data reveals a shift in XRP traders' preferences towards long-term savings instruments.

XRP Surges Past Key Resistance at $0.61

XRP has outperformed major assets like Bitcoin (BTC) and Ethereum (ETH) in the past two weeks. A key factor driving this rally is the recent ruling in favor of Ripple in its ongoing lawsuit against the US SEC.

This favorable ruling, which included a lenient $125 million fine, has boosted investor confidence in XRP, leading to a sustained uptrend in its price over the last three weeks.

As shown in the XRP/USD daily chart above, XRP's price surged from $0.43 on August 5 to reach $0.615 on August 20. This 42.2% increase directly coincides with the favorable ruling delivered on August 6.

This consistent price appreciation reflects a shift in investor sentiment, where the conclusion of the SEC lawsuit, which began in 2020, has encouraged more long-term investment in XRP. This bullish momentum continues to drive XRP's market value, showcasing a decisive change in traders' behavior.

XRP Traders Move 100 Million XRP to Long-Term Storage

The ruling has also triggered some interesting bullish changes in investor behavior. On-chain data indicates a significant increase in the number of investors adding XRP to their long-term savings portfolios. This shift is evident in the declining exchange reserves as investors move their XRP holdings into cold storage.

CryptoQuant's exchange reserves chart shows the total number of assets held in exchange wallets. Typically, a decrease in exchange reserves signals that investors are leaning towards long-term savings strategies.

At the beginning of August, investors held a total of 3.1 billion XRP coins in short-term trading wallets on exchanges. However, following the ruling, large quantities of XRP have been transferred to long-term storage, which has played a key role in the 42% price rally over the past three weeks.

As of August 21, the exchange reserves have dropped to 3.01 billion XRP, indicating that over 100 million XRP have been moved to cold wallets in August 2024. At a price of $0.61 per coin, this suggests that traders have withdrawn over $60 million worth of XRP from the short-term market supply.

This decline in exchange reserves is a bullish indicator, as it reflects growing investor confidence in XRP's long-term potential. If this trend continues, XRP could be poised for further upside as broader market sentiment improves.

XRP Price Forecast: $0.65 Resistance Next Target

The technical indicators suggest that XRP is poised to test the $0.65 resistance level next. The Bollinger Bands indicate that XRP is trading close to the upper Bollinger Band, which could signal potential upside momentum. The Parabolic SAR is also trending below the current price, further indicating bullish conditions.

However, traders should be aware of a possible pullback if XRP fails to break through the $0.65 resistance. Immediate support is at $0.58, with stronger support at $0.55. If XRP breaks above $0.65, it could pave the way for a move towards $0.70, while a failure to maintain current levels could see a retest of $0.58.

Overall, with strong bullish signals and decreasing exchange reserves, XRP seems to be setting up for a continued rally. But, traders should keep an eye on key resistance levels as XRP advances towards its next price targets.

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