The cryptocurrency market witnessed a significant milestone as XRP climbed to $0.60 on October 31, marking its highest level since mid-August. This upward movement comes amid heightened anticipation surrounding the US Federal Reserve's interest rate decision, which could influence XRP's future trajectory.
Over the past week, the XRP/USDT pair on Binance delivered an impressive 5.42% return, showcasing renewed interest in the digital asset. Market participants are closely monitoring developments between Ripple and the US Securities and Exchange Commission (SEC), particularly following recent comments from SEC Chair Gary Gensler and responses from Ripple executives.
Market Dynamics: Whale Activity Gives Way to Retail Participation
While XRP experienced a slight pullback after reaching $0.60, market observers note an interesting shift in trading dynamics. Large-scale investors, often referred to as 'whales,' dominated activity in previous weeks but have recently passed the baton to retail traders.
Data reveals that between October 18 and 26, whale transactions exceeding $1 million reached a three-month peak. This activity initially led to a price correction as some large holders took profits, but the altcoin quickly resumed its upward trend.
Santiment reports show the number of wallets holding at least 10,000 XRP tokens reached a record high of 277,620, indicating growing retail interest. Analysis of different retail segments reveals consistent growth across various holding sizes, with the 10,000 to 100,000 XRP cohort showing the most significant increase at 4.27% since late July.
Notably, Whale Alert detected a substantial movement of 30 million XRP tokens (valued at approximately $17.2 million) exiting Bybit. Such exchange outflows typically reduce immediate selling pressure, potentially supporting further price appreciation.
Regulatory Developments: Ripple Executives Challenge SEC Stance
Ripple's Chief Legal Officer, Stuart Alderoty, recently criticized SEC Chair Gary Gensler, suggesting the regulatory body may have overlooked certain legal requirements. This commentary follows a tweet from the US Government Accountability Office regarding the applicability of the Congressional Review Act to SEC accounting bulletins.
Technical Outlook: Potential for Further Gains
At current levels around $0.5864, technical analysis identifies a Fair Value Gap between $0.6682 and $0.6758 that could serve as resistance. The recent breakout to $0.60 demonstrates increasing buying pressure, with the current pullback potentially offering accumulation opportunities for market participants.
A successful breach of the $0.6682 level could propel XRP toward $0.6758, representing a potential 14% increase from current prices. However, traders should remain cautious, as a drop below the 23.6% Fibonacci Retracement level at $0.5457 might signal a shift in momentum, potentially leading to a 9.2% decline toward the $0.5244-$0.5320 support zone.