Thursday, February 29, 2024

Can XRP price hit $1? Watch these levels next

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The worth of XRP (XRP) has skyrocketed after a federal court ruling declaring that its sales on crypto exchanges complied with United States securities laws.

On July 14, the XRP price retreated by about 10% to $0.76, but compared with its lowest price the previous day, it was still up around 65%.

Related: Why is XRP price up today?

At its highest within the final 24 hours, the XRP/USD pair reached $0.93, its greatest degree since December 2021, simply shy of hitting the $1 mark.

XRP/USD day by day value chart. Supply: TradingView

A whale-backed XRP rally

Sure indicators present that XRP’s ongoing value pump will not be only a short-term response to the optimistic information for Ripple.

For example, the period of XRP’s huge pump coincides with its buying and selling volumes reaching a 10-month excessive. In the meantime, the variety of XRP whale transactions — wallets holding greater than $100,000 — climbed to their greatest degree in 2023, suggesting that the wealthiest buyers again the XRP rally.

“If key whale and shark addresses are rising their provide going into this pump, then it’s a get foreshadowing sign that the pump may be getting began, and it’s an indication of excellent issues to come back,” stated Brian Q, an analyst at knowledge analytics platform Santiment.

Whale transaction depend (>$100K). Supply: Santiment

Moreover, the XRP value positive factors come in keeping with an increase within the provide held by entities with a 100,000–10 million token stability.

XRP provide held by whales. Supply: Santiment

In different phrases, whales haven’t bought the rally but accumulated XRP, suggesting most want to position themselves for further gains.

XRP to $1 and beyond?

From a technical standpoint, XRP can test the key $1 level in the coming days, but its potential to continue its rally beyond looks weak for the time being.

Notably, the pullback on July 14 occurred near a resistance confluence comprising a multiyear horizontal trendline (purple) and a giant descending trendline ceiling (black).

In addition, XRP’s weekly relative strength index (RSI) has turned overbought, raising its correction prospects.

XRP/USD daily price chart. Source: TradingView

Should a pullback occur, XRP price risks dropping toward its multiyear ascending trendline support near $0.45 by September, down around 55% from the current price level.

Related: Ripple CTO warns against XRP scams amid SEC-induced hype

Different value targets embody the token’s 50-week exponential transferring common (50-week EMA; the pink wave) close to $0.48 and 200-week EMA (the blue wave) close to $0.50.

However, an overbought RSI may additionally consequence within the XRP value consolidating sideways contained in the $0.75–$1 vary.

XRP/USD weekly value chart. Supply: TradingView

If the XRP value decisively breaks above $1, then its subsequent value goal by September will possible be close to $1.35, a resistance degree from the August to December 2021 session.

Collect this article as an NFT to protect this second in historical past and present your assist for impartial journalism within the crypto area.

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.