XRP Soars 11.5% Amid High Investor Activity and Massive Exchange Withdrawals
Summary:
XRP has experienced an approximate increase of 11.50% over the past 24 hours, reaching $0.68. Contributing factors to this rise include high activity from major investors and substantial cryptocurrency withdrawals from exchanges. The surge is also alongside a significant recovery against Bitcoin (BTC), suggesting potential short-term gains for traders shifting to altcoins. From a technical perspective, the price increase emerges from a support confluence area, potentially indicating further room for XRP's growth. However, should it fail to surpass the multi-year descending trendline, a 20% drop to its ascending trendline support might ensue.
XRP, the cryptocurrency, has seen a substantial price surge today, experiencing an approximately 11.50% increase over the last 24 hours, eventually reaching $0.68. At its daily maximum, XRP hit $0.74, a high not seen since November 2023. The surge can be attributed to several key factors.
Unusually high activity from XRP's major investors, accompanied by substantial cryptocurrency withdrawals from exchanges, influenced today's rise in price. Most notably, on March 8, a whopping 300 million XRP tokens, amounting to over $187.13 million, were pulled out of Binance by an unidentified investor, as reported by Whale Alert, a data tracking resource.
Further withdrawals, valued between $18-19 million, followed, signifying that XRP's wealthiest stakeholders are opting to retain their tokens, rather than using exchanges to swap them for different assets. This trend is validated by data from Messari, illustrating a rise in the number of addresses holding over 1 million XRP during this price surge. These metrics suggest that the current XRP price rise is powered by significant investors, often indicating potential future price growth.
Alongside this, the increase in XRP's price coincides with an intense recovery against Bitcoin (BTC). The XRP/BTC pair leaped by more than 12% after it plummeted to 0.00000859 BTC, its lowest since March 2021, indicating some high-risk traders are shifting from Bitcoin to altcoins for possible short-term gains.
Traders often diversify their capital to alleviate potential risks in assets deemed "overbought". Considering Bitcoin's remarkable 72.5% increase this year, it remains "overbought" according to the daily timeframe chart. Compared to this, XRP's daily relative strength index (RSI) maintains neutrality, falling within the 30-70 range. This balanced sentiment implies that XRP might have additional potential for growth against the high-flying BTC.
From a technical analysis standpoint, XRP's price increase originates from a support confluence area. This confluence encompasses XRP’s ascending trendline, the 50-day exponential moving average (50-day EMA), and the 0.382 Fibonacci retracement line. These elements resemble a pattern from November 2023, preceding a 21.25% price surge.
To maintain its upward trend towards its prime target of $1, XRP needs to surpass the multi-year descending trendline. If not, a routine pullback could bring about a 20% drop to its ascending trendline support around $0.50.
In a pessimistic scenario, the lower target aligns with XRP's 50-week and 20-week EMAs. Investors always need to be mindful, as every investment and trading move carries risk, and thorough research should be performed prior to making any decisions.
Published At
3/12/2024 1:01:11 PM
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