Ripple’s XRP Attracts Institutional Investors: Sees 127% Asset Growth

Key Insights:

• Institutional interest in XRP products has increased by 127% in 2023 due to positive outcome in SEC vs. Ripple lawsuit.
• XRP trades in falling wedge, longer-term support at $0.54; resistance at $0.7285 and $0.83.
• Bitcoin oscillating within descending triangle, support at $28,000 level; resistance at $31,270.
• Ethereum remains stuck in descending triangle, support at $1,755 level; resistance $1,970 and $2,010.

Bitcoin, Ethereum and XRP Forecast Video for 15.08.23 by Tim Smith

Ripple’s XRP (XRP) continues to attract buying interest from larger investors. The fifth largest cryptocurrency by market capitalization saw an inflow of funds for the 16^th consecutive week, according to a report tabled by digital assets investment firm CoinShares. XRP products have seen assets under management (AUM) balloon by 127% since the start of 2023 the report noted, largely attributed to favorable developments in the drawn-out Ripple Labs vs. the U.S. Securities and Exchange Commission (SEC) legal battle.

The SEC filed a $1.3 billion lawsuit against Ripple in December 2020, alleging the sale of unregistered securities through XRP. A federal district judge’s partial ruling indicated that XRP sales to retail investors were not classified as securities, providing optimism for both investors and Ripple. Although institutional sales contracts worth $728 million were considered unregistered securities sales, the market’s interpretation of the ruling remains positive.

This outcome underpinned confidence in XRP and the broader cryptocurrency market by helping to set a precedence that digital currencies offered to retail clients do not constitute securities. However, recent bullish sentiment suffered a setback last week after the SEC outlined plans to appeal the federal judge’s decision handed down in the case.

Below, we discuss important trading levels on the XRP chart and also use technical analysis to analyze recent price moves in Bitcoin (BTC) and Ethereum (ETH).

XRP

XRP’s price has oscillated within a falling wedge pattern for the past three weeks. In recent trading sessions, bulls have attempted to stage a breakout above the wedge’s top trendline, however, a lack a volume behind the move places doubts about further upside follow through. A convincing close above the 50-period SMA has the potential to improve the indecisive sentiment and trigger a rally back up to key resistance levels at $0.7285 and $0.83, respectively. Conversely, a failure to hold above the wedge’s top trendline and 50 SMA could see falls to longer-term support at $0.54.

Technical Analysis: Bitcoin and Ethereum

Bitcoin

Bitcoin remains entrenched in a long-term descending triangle. More recently, the price finds a confluence of resistance from the triangle’s top trend line and 200 SMA. A volume-backed breakout could see bulls make another attempt at the $31,270 level. The price finds resistance in this area from the top of a previous trading range. Alternatively, a breakdown below the pattern’s lower trendline could see Bitcoin fall to crucial support around $28,000.

Ethereum

Like Bitcoin, Ethereum’s price remains stuck in a descending triangle. Moreover, it continues to trade within a tight range between the SMAs, providing little clues about future price direction. A close above the 200 SMA may see bulls retest prominent July swing high peaks at $1,970 and $2,010. On the flip side, failure to hold above the triangle pattern’s bottom trendline could see bears sell the price down to key support at the $1,755 level.