The price of XRP (XRP) has experienced a significant increase today, rising by approximately 11.50% in the past 24 hours to reach $0.68. At its highest point during the day, the cryptocurrency was trading at $0.74, its highest level since November 2023.
Today’s surge in XRP’s price can be attributed to several core factors. One of them is the activity of XRP whales and the withdrawal of funds from crypto exchanges. On March 8, an anonymous entity withdrew 300 million XRP, which is worth over $187.13 million, from Binance, according to data from Whale Alert. Subsequent outbound transactions worth $18-19 million also took place, indicating that XRP’s wealthiest investors are choosing to hold onto their tokens instead of trading them for other assets on exchanges. This trend is further supported by data from Messari, which shows an increase in the number of addresses holding over 1 million XRP during the current price rally. This suggests that large crypto investors are behind the current price gains, which is typically a positive sign for further upside.
Another contributing factor to XRP’s price increase today is the capital rotation from Bitcoin markets. XRP’s price gain coincides with a sharp rebound against Bitcoin (BTC). The XRP/BTC pair has risen by over 12% after reaching its lowest level since March 2021. This indicates that risk-on traders are shifting their focus from Bitcoin to altcoins in search of greater profit potential in the short term. Traders also rotate their capital to reduce their risk exposure in overbought assets. Despite its impressive 72.5% rise so far in 2024, Bitcoin remains “overbought” on the daily timeframe chart. In contrast, XRP’s daily relative strength index (RSI) remains within the neutral range of 30-70, indicating a balanced sentiment among investors. This suggests that XRP has more room to rise against Bitcoin.
From a technical analysis perspective, XRP’s price gains have emerged from a support confluence area. This confluence consists of XRP’s ascending trendline, 50-day exponential moving average (50-day EMA), and the 0.382 Fibonacci retracement line. These support levels resemble a fractal pattern observed in November 2023, which preceded a 21.25% price rally. Therefore, XRP’s price will aim for a close above the multi-year descending trendline resistance to sustain its uptrend towards the popular target of $1. However, if the price faces routine resistance and pulls back, it could result in a 20% drop towards the ascending trendline support near $0.50.
It is important to note that this article does not provide investment advice or recommendations. Investing and trading involve risks, and readers should conduct their own research before making any decisions.