Leading altcoin troupe XRP, Cardano’s ADA, Solana [SOL] as well as the Ethereum [ETH] might throw a surprise in the form of “January Effect Crypto Pop”, analyst Gareth Soloway of InTheMoneyStocks.com opined.
Bitcoin volatility is at all-time lows. Negatively and indifferent are high. Minimal bear market rallies, unlike the StockMarket. Almost makes me think a January Effect Crypto pop is coming before more downside. Hmmm. Ethereum Cardano Solana Ripple.
According to Wikipedia, in the “January effect,” there is a seasonal aberration in the financial market where the price of assets rises in January more than in any other month.
In the context of Soloway’s tweet, this could be indicating a fast boost up before capitulation.
2022 has overall been a tumultuous year for the crypto market. XRP too has its share of ebbs and lows.
The price of the token surged by 60% to $0.9, and by the end of the year, it had dropped to $0.34. But when the market’s performance was taken into account, XRP performed rather well, losing “just” 56% of its value since January 1.
Additionally, the asset was able to distinguish itself and surpass BUSD in capitalization. With the biggest market valuation, it is now the sixth-largest cryptocurrency.
However, since the start of the final quarter of the year, large-scale investors have been accumulating the token, and this buying was bolstered on December 23.
This aspect may have been influenced by the resolution of the SEC’s legal dispute with Ripple, the firm that developed XRP, which heated up in late 2020.
Whales Grabbing XRP Will Increase If Ripple Wins Against The SEC
The cryptocurrency market has high hopes that this issue will be resolved in 2023 and that Ripple will emerge as the clear winner or that a settlement will be reached.
XRP would benefit greatly from this since it could once again trade on exchanges that had removed it from their platforms and new cryptocurrency firms could list the altcoin.
If this scenario occurs, XRP might have improved liquidity and resume the capitalization patterns it had prior to the start of the SEC procedure.
Therefore, even while it is not yet reflected in the price of the token, the addition of additional capital from whales may simply be anticipating this event and collecting XRP.