As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and trends. Today, while most cryptocurrencies are grappling with uncertainty, XRP stands tall amidst the storm. The recent buying spree from whales, as evidenced by the consistent growth in wallets holding between 1 million and 10 million XRP, is a clear bullish signal. However, it’s important to remember that every rising tide lifts its own boat, and with this surge comes potential selling pressure if holders decide to cash out on their profits.
During the US trading session on Tuesday, the price of XRP outperformed other cryptocurrencies. Unlike Bitcoin (BTC) and Ethereum (ETH), which experienced a decrease of 2.6% for BTC and 4.5% for ETH due to growing market unrest, Ripple‘s XRP rose by 1.7% to $0.5973.
XRP Price Market Movers: Whales Go On Buying Spree, MVRV Signals Buy, Ripple vs. SEC Lawsuit
- XRP price signals a major bullish move above $0.6 resistance as whales turn to the token, buying over 50 million XRP. On-chain data from Santiment reveals consistent growth in the number of tokens held in wallets, between 1 million and 10 million. Moreover, whale transactions with a more than 1 million USD value shot up to 25 on August 26, implying a positive long-term outlook.
- The Market Value Realised Value (MVRV) 2.445% increase on Santiment suggests that investors are holding XRP at a profit. This is a bullish indicator, suggesting potential upward price movement. However, caution will be advised as the metric continues to rise, as holders may choose to sell for profit, resulting in selling pressure and a correction.
- While the court delivered the final ruling in the Securities and Exchange Commission (SEC) against Ripple, uncertainly still shrouds the company and XRP price whether the regulator will proceed with an appeal. So far, the SEC has not revealed the direction it intends to take, especially Judge Analisa Torres falling short of granting an injunction against the sale of XRP to institutional investors.
Nevertheless, Torres granted the SEC’s injunction, warning Ripple not to violate US securities laws in the future. An appeal could push XRP into disarray with a sell-off like to follow.
XRP Price Prediction: Targeting Inverse H&S Pattern
The price of XRP appears to be preparing for a significant reversal in trend, known as an inverse head and shoulder breakout, which could potentially boost its value by up to 21.6%. This optimistic outlook stems from a modest decline following the jump to $0.63 last week. Investors have shown confidence in the 20-day Exponential Moving Average (EMA) as a potential support level at around $0.5863.
In simpler terms, when the price of XRP dropped three times, with the center drop being the lowest (referred to as the ‘head’), and the other two drops being higher (the ‘shoulders’). A horizontal line (dotted) links these shoulder highs. Importantly, if the price moves above this line (neckline), it could indicate a possible 21.6% rise towards $0.74. Traders can benefit from this situation by buying (going long) after the breakout, setting their stop losses below the same neckline.
If the 20-day support for XRP doesn’t stay strong, it could lead to a drop in its bullish trend, causing it to fall back towards both the 20-day and 200-day Moving Averages.
Read More
- ENA PREDICTION. ENA cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- USD COP PREDICTION
- Red Dead Redemption: Undead Nightmare – Where To Find Sasquatch
- USD ZAR PREDICTION
- PYTH PREDICTION. PYTH cryptocurrency
2024-08-27 22:54