The Ripple price is struggling even after Ripple Labs published strong quarterly results. XRP is trading at $1.4300, which is 12% below its highest point yesterday and 27% below its all-time high. According to CoinMarketCap, it has a total market capitalization of more than $49.6 billion and is the eighth-largest cryptocurrency in the world. It has been passed by Cardano, Tether, Dogecoin, and Internet Computer (ICP).
XRP ranking has dropped to 8
Ripple Labs had a great quarter
Ripple Labs is the company behind XRP. The company published strong growth even as it faced significant challenges with the ongoing SEC lawsuit. The suit has made many companies to suspend XRP. MoneyGram has also suspended its relationship with the company.
The results showed that the company’s total sales net of purchases were more than $150 million. This was almost double where they were in the fourth quarter of 2020. This happened as the average total daily volume of XRP traded surged to more than $2.26 billion compared to $1.61 billion in the previous quarter. This happened even as its volatility declined.
Ripple also released 3 billion XRPs from escrow, in line with what it always does. 2.7 billion of these XRP were returned back to escrow. Most importantly, the number of whales buying XRP rose in the quarter. Accounts with at least 10 million XRPs rose to 319 from the previous 308.
Ripple quarterly results
The report came on a day that the New York Times published an article illustrating that the company has invested in Washington lobbyists as it faces a difficult period ahead. Further, Ripple Labs is said to be considering an IPO after the case concludes. So, what next for the Ripple price?
Ripple price prediction
It is worth noting that the recent XRP price sell-off was as part of the general cryptocurrency meltdown. This happened after the Bitcoin price crashed by more than $3,000. Indeed, this was in line with what I had predicted in this Bitcoin prediction article. This sell-off is also because of concerns ahead of the US inflation data set for tomorrow.
On the daily chart, we see that the Ripple price has been in a general upward trend for months. Recently, though, the price has consolidated as some investors take profits. This has led to the formation of what looks like a bullish pennant pattern. In technical analysis, this is usually a bullish sign. The price is also being supported by the 25-day and 50-day exponential moving averages.
Therefore, in my view, I suspect that the XRP price will continue surging. For this to happen, bulls will need to move above the upper descending line of the pennant pattern. Nonetheless, a drop below $1 will invalidate this trend.