u.today
Crypto analyst Ali pointed out a trend in XRP that he believes might impact its price.
Ali noted that XRP has remained above the $0.50 mark after the SEC filed charges against Binance and Coinbase as compared to several altcoins that witnessed significant dips.
$XRP remains above $0.50 after the @SECGov sued @binance and @coinbase, while most #altcoins dipped.
— Ali (@ali_charts) June 8, 2023
Although this may seem like a sign of strength for #Ripple, the crowd is well aware of it as mentions on social media surged. This isn't good for the price of #XRP. pic.twitter.com/96n8jywOg8
At one point in the week, tokens mentioned in the SEC lawsuit, such as The Sandbox (SAND), saw declines of as much as 18%. The XRP price also declined, but its losses were fewer.
Ali mentioned a surprising fact: though this might seem like a sign of strength, it may not bode well for the XRP price. His assumption might be the advent of profit-taking after XRP's impressive price action in the past few weeks.
In recent weeks, XRP's price has shown signs of decoupling from the general market trend. Since May 11, the XRP price has been on an upward trend, reaching highs of $0.547 on June 4 before resorting to consolidation.
Currently, XRP is trading like the rest of the crypto market, marginally down in the last 24 hours to $0.52.
At the moment, two potential scenarios exist: XRP maintains its decoupling trend from the rest of the market or discontinues it. The latter seems to be the case at the moment.
This week, the SEC filed charges against the two biggest crypto exchanges, Binance and Coinbase. The SEC also sought to freeze assets on Binance.US exchange.
On-chain analytics firm Santiment expects social volume concerning current market events to continue to have an inverse correlation to price.
It also opines that a potential recovery in price largely depends on how big of a deal this ends up being, urging traders to watch out for how the next one to three weeks progress.
Technically, the advantage remains for buyers in the case of XRP, as the daily RSI remains in the positive 60 range. However, traders should keep an eye on the general market trend as events unfold in the upcoming days and weeks.