XRP, the native token of Ripple Labs, is showing signs of potential upside momentum as various indicators point towards bullish signals. Recent whale activity, on-chain metrics, and technical analysis all suggest that XRP may be gearing up for a significant price increase.
A recent whale transaction tracker, Whale Alert, reported a transfer of 22.08 million XRP tokens worth $46.13 million from Binance to an unknown wallet. This sizable transaction during a period of market downturn hints at a “buy the dip” strategy being employed by whales in the XRP ecosystem.
Despite the recent market volatility that caused XRP and other cryptocurrencies to bleed, data from on-chain analytics firm Coinglass revealed that long-term holders and whales remained steady in their accumulation of XRP. A significant outflow of $139.5 million from exchanges in the past three days indicates that investors are holding onto their XRP despite the price decline.
In technical analysis, XRP’s daily chart is forming a bullish flag and pole pattern, suggesting a potential uptrend in the near future. While XRP has maintained support above $2, it is currently facing resistance around $2.45. If XRP manages to break this resistance level and close a daily candle above $2.5, there is a strong possibility of a 60% price increase to reach $4.2. However, a bearish sentiment could result in an 18% price decline.
As of now, XRP is trading around $2.40 with a price surge of over 20% in the past 24 hours. However, trading volume has decreased by 8%, indicating lower participation from traders and investors compared to the previous day.
Overall, the combination of whale activity, on-chain metrics, and technical analysis suggests that XRP may be gearing up for a significant price movement. Investors should keep a close eye on key resistance levels and market sentiment to capitalize on potential opportunities in the XRP market.