XRP Value Climbs 2% in a Day with Support from 'Whales' Amid Cooling US Inflation
Summary:
XRP's value saw a surge of over 2% within 24 hours, boosting its price to $0.525. The rise is attributed to the overall upswing in the cryptocurrency market and accumulation from "whales", or prominent investors. This surge follows a reported cooling inflation by the US Consumer Price Index, spurring a 5% rise in XRP's price post-announcement. Further, these gains coincide with 'whale' aggregation, with entities holding between 1 million and 10 million XRP having bolstered their holdings by $55 million in the past fortnight, showing strong support for XRP's rally.
XRP (XRP) has seen a positive surge in value today, with an increase of over 2% in the past 24 hours, taking it to $0.525. This robust climb places the crypto coin approximately 25% above its lowest recent value of $0.423 from a month ago.
The price spike can be attributed to a general uplift in the overall cryptocurrency market and the accumulation by prominent investors, often referred to as "whales."
This upsurge in XRP's value is a part of the broader recovery following the revelation of a decline in inflation by the U.S. Consumer Price Index (CPI) on May 15.
The core inflation in the U.S, which registered a rise from 0.3% to 3.6% in March, marked the lowest without considering food and energy costs since April 2021. This drop led bond traders to advance their expectations of the year's first interest rate cut to September from November, as per CME data.
Since the CPI announcement, XRP's price has climbed by 5%, suggesting that the potential of rate reductions has spurred the investment community's enthusiasm for cryptocurrency investments.
The positive trend in XRP's performance today also aligns with evidence of accumulation among its wealthiest investors, or "whales."
Data from the resource platform, Santiment, reveals that entities possessing between 1 million and 10 million XRP have bulked up their token holdings by 110 million. This represents a value of approximately $55 million during the past fortnight, illustrating substantial whale backing driving the rally.
From a technical standpoint, the XRP hike is part of a recovery post-testing its multi-year descending triangle pattern's lower trendline.
As of May 18, XRP's price is expected to close beneath its 200-week (blue) and 50-week (red) exponential moving averages (EMAs) around $0.525 and $0.550, respectively. Achieving this could allow the crypto coin to set sights on the triangle's upper trendline about $0.585 as the subsequent positive target.
The target of 0.585 has served as a baseline during the May-June 2021 and January 2022 sessions.
Investments and trading always carry risk, and it is recommended to undertake thorough research prior to any financial decision. This piece does not provide any investment advice or suggestions.
Published At
5/18/2024 3:09:06 PM
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