XRP Price Analysis: Strong Support at $0.52 Indicates Whale Accumulation of $77 Million
Altcoins
Cryptocurrency
Last updated:
October 20, 2024 11:17 EDT
By Arslan Butt
Ripple’s XRP has demonstrated resilience in the face of ongoing regulatory pressures, with the token stabilizing at $0.5415 despite an 18% drop earlier this month due to legal uncertainties with the SEC. Analysts are now optimistic about XRP’s recovery, citing significant accumulation of the token by whales as a key indicator.
According to data from Santiment, addresses holding between 100 million and 1 billion XRP have accumulated approximately 140 million tokens, valued at $77 million. This increased holding has resulted in a total of 9.77 billion XRP in these large addresses.
Historically, large-scale accumulation by whales has often preceded upward price movements. Analysts believe that with this buying pressure, XRP could break past the $0.55 mark in the near future. However, there is also caution as a slowdown in accumulation could result in XRP falling below the crucial psychological support level of $0.50.
Key Insights:
– Whale Accumulation: 140 million XRP added, totaling 9.77 billion tokens.
– Current Trading Level: $0.5415, with strong support at $0.52.
– Price Target: Break above $0.55 could signify a bullish rally.
Ripple’s upcoming launch of its stablecoin, RLUSD, is also seen as a catalyst for long-term growth. The stablecoin, which will be supported on both the XRP Ledger (XRPL) and Ethereum, will be pegged 1:1 to the US dollar. While stablecoins are generally used for value transfers rather than speculative investments, Ripple’s partnerships with Bitstamp and MoonPay could increase liquidity and drive demand for XRP.
The success of RLUSD will depend on its adoption among retail and institutional users. Although its immediate impact on XRP’s price may be limited, the launch of the stablecoin is a strategic move to enhance Ripple’s reputation and strengthen its position in the crypto ecosystem.
Another bullish signal for XRP is its positive Funding Rate. This metric, which measures the difference between the mark price of perpetual futures and the index price, indicates the prevailing market sentiment among traders. A rising Funding Rate suggests a bullish sentiment, as traders with long positions pay a premium to those with short positions.
Currently, XRP’s Funding Rate is positive, hinting at the potential for a price rally. If this trend continues, traders holding long positions may benefit as the price approaches higher resistance levels.
Key Takeaways:
– Stablecoin RLUSD Launch: Expected to boost liquidity and strengthen Ripple’s network.
– Positive Funding Rate: Indicates bullish trader sentiment and potential upward momentum.
– Support Level: Strong defense at $0.52 could prevent a drop below $0.50.
XRP is currently consolidating within a narrow range between $0.52 and $0.54, with $0.52 acting as a strong support zone. Bulls have consistently defended this support level, showing solid market backing and a reluctance to allow further declines. Immediate resistance levels are at $0.54363, $0.56301, and $0.58031.
The Relative Strength Index (RSI) is currently at 43.78, indicating a bearish momentum but nearing oversold conditions, which could signal a rebound. The 50-day Exponential Moving Average (EMA) of $0.553 continues to act as dynamic resistance.
A breakout above $0.55 could lead to stronger bullish momentum, with potential gains reaching higher resistance levels. Traders should monitor the possibility of a breakout scenario based on the ongoing price consolidation and technical indicators.
The combination of whale accumulation, stablecoin developments, and a bullish funding rate suggests that XRP may soon test new resistance levels. A successful breach of $0.55 could pave the way for further gains and a sustained rally in the coming weeks.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes only and does not constitute investment advice. You could lose all of your capital.
