Having surpassed the $50 billion mark in market capitalization, XRP has once again established itself as a dominant player in the digital currency market. Following a rapid ascent of more than 16% within a day to reach $0.9342, the token has attracted widespread attention due to its current momentum.
The burning question now is whether XRP can sustain this surge and break through the $1 barrier to reach the coveted $2 milestone.
Is XRP Poised for a Significant Surge?
An analysis of XRP’s chart signals a potential surge, with its price inching closer to a crucial resistance level at $1.33. A decisive breakthrough beyond this point could trigger a rapid rise towards the aforementioned targets. Moreover, the overall bullish trend appears to be reinforced by technical indicators.
For instance, the stochastic RSI displayed an extreme reading of 97.56, suggesting that XRP is currently in an overbought state. While this could point towards short-term adjustments, the bullish outlook highlighted by the MACD and the positive market sentiment provide XRP with the necessary support to sustain its upward trend.
Consequently, breaching the $1 mark seems within reach in the near future. Should this be achieved, hitting $2 could become a feasible mid-term goal as long as the momentum remains strong.
XRP Whales Strengthen the Rally
The surge in XRP’s price has been significantly fueled by the actions of large XRP holders, as they have accumulated more than 320 million tokens in a span of just 72 hours.
This substantial accumulation underscores the rising confidence among major investors, many of whom are strategically positioning themselves for further profits. As a result, this buying spree has led to a decrease in available supply, potentially resulting in sustained upward pressure on prices.
Given that whale activity often foreshadows significant price movements, this trend indicates that XRP’s rally might still have room to expand.
Increasing On-Chain Activity Reflects Rising Demand
On-chain analytics further corroborate the optimistic outlook for XRP. The number of active addresses has risen by 1.17%, reaching a total of 27,421.
This consistent growth signifies increasing network engagement and activity. Moreover, the total transaction count has surged by 0.92%, surpassing 1.88 million transactions. Collectively, these metrics suggest a broadening adoption of XRP, which typically translates to stronger price performance.
Reduced Exchange Reserves Point to Diminished Selling Pressure
Over the past day, XRP exchange reserves have declined by 0.64%, with the current figure standing at 3.237 billion tokens.
This decrease indicates that investors are moving their holdings off exchanges, possibly for long-term investment purposes. Consequently, the reduced selling pressure creates a conducive environment for further price upticks. When coupled with the growing demand, whale accumulation, and increasing on-chain activities, this trend reinforces the bullish case for XRP.
XRP’s ascent past the $50 billion market cap milestone, alongside strong technical and on-chain indicators, hints at an imminent breakthrough of the $1 barrier. The next phase will be crucial in confirming this upward trajectory on the charts.