Ripple (XRP) made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss (NPL) have turned bullish, supporting a recovery in the altcoin.
The US Securities and Exchange Commission (SEC) vs. Ripple lawsuit proceeds with the issue of fines for the alleged violation of securities laws. While Ripple proposed $10 million in penalties, the SEC quoted $102.6 million in a filing on May 29.
XRP transaction volume vs. price
XRP NPL vs. price
XRP is trading at $0.4841 on Wednesday. While the altcoin erases nearly 1% of its value on the day, the Moving Average Convergence Divergence (MACD) momentum indicator in the daily chart suggests a recovery in XR/USDT is likely.
The MACD shows green histogram bars above the neutral line, and the MACD line crosses above the signal line, supporting a bullish thesis for XRP.
XRP could rally towards the Fair Value Gap between $0.5008 and $0.5164, as seen in the chart below. The next resistance for Ripple is $0.5330.
XRP/USDT daily chart
On the contrary, if XRP suffers a correction, Ripple could find support at $0.4508, the June 7 low. Further support is the April 13 low of $0.4188.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.