Why XRP Price Action Indicates a Potential Bullish Surge

XRP price shows promise amid whale wallet surge and bullish momentum, but SEC appeal looms.

Man warming up to ride the waves of XRP.
Created by Kornelija Poderskytė from DailyCoin
  • XRP price analysis has implied a potential turning point as profit-taking has followed its ascent.
  • An intriguing surge in XRP “whale wallets” above $0.70 has sparked interest among investors.
  • Short-term bullish momentum has pushed XRP towards $0.75, but resistance levels have loomed large.

XRP, the digital asset synonymous with Ripple Labs, has caught the attention of traders and investors alike. As the XRP price exhibits intriguing patterns on the daily chart, all signs point towards a potential turning point that could shape its trajectory in the days to come.

XRP Price Surge Triggers Massive Interest Among Whales

The ascent of XRP price commenced on July 14, only to reach its peak at $0.854 on July 19, after witnessing a surge in profit-taking activities. 

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As a result, the price encountered a stumbling block and descended into a demand zone, with a particular focus around the $0.69 mark. An unsuccessful attempt was made to breach the recent peak, followed by a retest of the support level near $0.69.

During the early days of the week, Santiment, a distinguished on-chain analytics firm, reported an intriguing development. The XRP price above $0.70 attracted a surge in XRP whale wallets. 

Since May 13, the number of these whale wallets, each holding over 100 million tokens (equivalent to at least $74 million), has surged to a count of 199, as per the analytics firm’s data.

Price Needs to Overcoming Resistance for a Potential Rally

The current scenario also indicates a short-term bullish momentum for XRP. Notably, the price broke above a long-term downtrend line, accompanied by above-average trading activity. 

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As we look ahead, the $0.75 mark may be within reach due to this bullish momentum. However, the path ahead is not without its challenges. The 200-day simple moving average and a horizontal trendline are poised to provide resistance.

Should the XRP price decisively breach the 200-day SMA, there is a likelihood of a substantial rally, potentially reaching the high seen last week at $0.84. Nevertheless, this breakthrough could be negated if the price reverses below the 50-day simple moving average, inviting a decline toward Tuesday’s low, approximately at the $0.6770 level.

On the Flipside

  • It’s important to note that the cryptocurrency market is inherently volatile and subject to external factors beyond technical analysis, such as regulatory developments and broader market sentiments.
  • Profit-taking might continue to escalate, potentially leading to a deeper retracement in the XRP price.

Why This Matters

As XRP breaks free from a long-term downtrend and encounters resistance levels, investors must closely observe its trajectory, while Ripple’s legal situation adds an element of uncertainty to the overall market sentiment.

To learn more about the recent FOMC speech and its impact on the crypto market, read here:

Boring FOMC Speech and Predicted Rate Hike Fails to Stir Crypto Market

Ducati’s collaboration with Ripple to bring historic NFTs to fans is an exciting development. Find out more about it here:

Ducati and Ripple Aim to Connect Fans with Historic NFTs

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.