XRP Reaches Critical Price Level as Large Investors Buy 1.26 Billion Coins
XRP, the popular cryptocurrency, has been experiencing significant growth in recent trading hours. Investors and traders have seen substantial gains, with the hourly chart showing a bullish trend despite a sharp increase. CoinGecko reports an impressive 8.9% increase in the past 24 hours, marking a seven-day rally of 24.4%, as XRP hovers around $0.696533.
Bulls are demonstrating their strength on the daily time frame, highlighting the cryptocurrency’s resilience and potential for further upward movement. An analysis of XRP’s price action reveals several compelling factors that suggest a positive outlook for this digital asset.
Sustained Momentum Above Key Moving Averages
XRP’s current price of $0.696533 is not just a temporary spike. It is trading above the 50-day and 200-day exponential moving averages (EMAs), indicating a strong bullish sentiment. When a cryptocurrency stays above these key EMAs, it typically indicates a solid foundation for a prolonged uptrend.
The potential for a bullish cross between the 50-day and 200-day EMAs adds weight to the argument for sustained growth. This technical configuration suggests that XRP may continue to climb, attracting more investors looking to capitalize on the positive price action.
RSI Confirms Strong Buyer Sentiment
In addition to the moving averages, the Relative Strength Index (RSI) for XRP is comfortably above the 50 mark. The RSI is a momentum oscillator that measures the speed and change of price movements. When it crosses the 50 threshold, it indicates a shift towards bullish sentiment.
With the RSI clearly in the bullish territory, it further solidifies the notion that buyers are firmly in control of XRP’s price trajectory. This heightened level of buyer confidence is a crucial driver for the cryptocurrency’s ongoing price appreciation.
Critical Resistance Point
While XRP’s recent performance is undeniably impressive, traders and investors should exercise caution and closely monitor the daily bar closure, particularly in relation to the resistance level at $0.6541. This price point serves as a critical juncture that could influence the direction of XRP’s price movement.
Breaking through this resistance could propel XRP to even greater heights, possibly establishing new support levels at higher values. Conversely, failing to surpass this obstacle may lead to a temporary setback. Therefore, staying vigilant and responsive to the market’s dynamics is paramount for those considering XRP investments.
XRP Whale Appetite Increasing
Meanwhile, there has recently been a notable increase in the acquisition of XRP by prominent cryptocurrency investors, referred to as “crypto whales.”
This surge in purchasing activity has contributed to a highly dynamic start to the month of November. The XRP price surge has been significantly influenced by bullish trading activity observed within a cohort of strategic crypto whales, as indicated by recent on-chain data.
Whales, who possess between 100,000 and 1 billion XRP, accumulated an additional 1.26 billion XRP between October 24 and November 6, setting a new record for their total holdings in 2023. This significant investment by wealthy investors has played a role in the positive price movement of XRP.
At $0.68 per XRP, the 1.26 billion XRP acquired is worth $850 million. XRP price rose above the important resistance zone at $0.65 after this substantial investment in two weeks.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).