Whale Investors Reinforce Confidence in XRP Amidst Bearish Trends
The cryptocurrency market is currently experiencing heightened bearish pressures, yet whale investors are showing unwavering confidence in XRP. This resilience is evident as significant investors amassed an impressive 150 million XRP over a mere 48-hour window. This accumulation took place even as XRP struggled to maintain its footing above the crucial $2.50 support threshold. This strategic move was highlighted by renowned on-chain cryptocurrency analyst Ali Martinez in a post shared on February 19.
Potential Turning Point: Whale Accumulation of XRP
The latest surge in whale activity could signify a pivotal moment for XRP. Historically, bulk purchases by large investors have often foreshadowed a rebound in price. This accumulation not only offers potential stability for XRP but also acts as a buffer against recent selling pressures, potentially drawing in retail investors.
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XRP Price Levels to Monitor
In the short term, XRP faces resistance at the $2.75 mark, a level where previous attempts to ascend have encountered significant selling pressure. Conversely, the $2.40 to $2.50 range has consistently served as a robust support level. Should XRP maintain its upward trajectory and surpass this resistance, it could spark a bullish breakout, potentially driving its price towards $3. However, a failure to hold support might lead to a deeper correction, possibly targeting $2.20.
Long-Term Prospects for XRP
Looking ahead, cryptocurrency analyst Dark Defender has identified key price targets for XRP. As per his analysis, XRP is aligning with the Elliott Wave structure. Having completed Wave 2, the token now seems poised for an explosive advance into Wave 3, traditionally the most robust phase of the cycle.
Key support levels, as outlined by the analyst’s chart, are $2.4467 and $1.9996. Meanwhile, resistance is positioned at $2.6052 and $3.3999, with potential surges eyeing $5.8563 and beyond $8, provided momentum is maintained.
XRP’s Technical Indicators and Market Sentiment
Adding to the bullish sentiment, XRP is rebounding from the Ichimoku Cloud, a technical indicator suggesting a strong continuation of upward momentum. This setup closely mirrors past breakouts, notably the November rally that saw XRP rise from a prolonged consolidation below $1.
Furthermore, XRP may experience continued upward momentum as focus shifts to the Securities and Exchange Commission (SEC). The SEC is currently reviewing applications from 21Shares and Bitwise to list spot XRP exchange-traded funds (ETFs), with 21Shares’ filing acknowledged on February 14 and Bitwise’s on February 18. This marks the beginning of a formal process, including a 21-day public comment period.
Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate a 65% likelihood of approval. Interest from firms like Canary Capital and WisdomTree, who have also filed for XRP ETFs, underscores the growing institutional interest in the token.
Current XRP Price Analysis
As of the latest update, XRP is trading at $2.60, reflecting a slight 0.4% decline over the past 24 hours. However, on a weekly scale, the asset has appreciated by nearly 9%.
Despite these gains, the short-term outlook remains bearish, as XRP trades below the 50-day simple moving average (SMA) of $2.67. Nonetheless, its position above the 200-day SMA of $1.407 suggests a promising long-term uptrend. The 14-day relative strength index (RSI) at 45.44 indicates that XRP is approaching oversold levels, potentially signaling a buying opportunity for investors.
In conclusion, while XRP faces short-term challenges, the steadfast confidence of whale investors and the potential approval of XRP ETFs signal a positive outlook for the asset’s future trajectory.
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