Recent on-chain metrics indicate a bullish outlook for XRP, despite ongoing legal uncertainties. Traders should remain cautious, as these metrics suggest potential gains for the altcoin.
Stabilizing Daily Active Addresses
Since the SEC order in mid-July, daily active addresses have stabilized after reaching a peak. This stabilization may indicate that XRP has found a price bottom. Furthermore, the network has shown consistent growth since June, which supports this optimistic view.
Steady Network Growth
In early August, XRP experienced a price decline. However, this did not deter accumulation, as evidenced by a rise in mean coin age. This increase suggests that investors are holding onto their assets rather than selling them.
Low Dormant Circulation
Moreover, XRP’s low dormant circulation means fewer tokens are moving in the market. This situation reduces the likelihood of strong selling pressure, which can negatively impact prices. As a result, the market may experience a more stable environment for XRP.
Positive Short-Term MVRV
Although some holders have realized gains, profit-taking has limited overall price increases. Nevertheless, the short-term Market Value to Realized Value (MVRV) remains positive. As the network continues to grow steadily, ongoing accumulation will likely fuel demand for XRP in the future.
Kraken Ruling Challenges SEC’s Approach
In a recent court case involving Kraken, the court ruled that there are no such things as “crypto asset securities.” This decision poses challenges for the SEC, undermining the basis of their regulatory approach. The SEC has used this classification to justify enforcement actions against cryptocurrencies, including XRP.
Currently, the SEC has not announced whether it will appeal the recent ruling in the Ripple case. Consequently, XRP’s price reflects persistent legal uncertainty. Nevertheless, the Kraken ruling provides some support for XRP, as it shares similarities with the Ripple case.
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In conclusion, while caution is warranted, the combination of on-chain metrics and recent legal developments suggests a potential for XRP gains.
