Over the past week, Ripple’s XRP has experienced an 8% surge, accompanied by a significant 40% increase in daily trading volume, indicating heightened interest from large investors who took advantage of the price dip to $2.40.
As bullish sentiment prevails, the question now arises: Can XRP sustain its momentum to reach $3, or are we poised for a minor setback to shake out speculators before a true rally unfolds?
The upcoming market movements are pivotal – warranting close observation.
Bitcoin’s Growing Dominance
The number of active accounts on the XRP Ledger has plummeted by 76% since its peak during the most recent uptrend, dropping to 109,000.
This steep decline implies that many investors with weaker positions have opted to exit the market after capitalizing on XRP’s climb to $3.40.
Nevertheless, XRP’s price action hints at renewed accumulation around the crucial support level of $2.40, with major players acquiring 60 million XRP within a 24-hour timeframe.
This pattern could signify the initial phase of a resurgence towards $3, a cyclical occurrence that has been witnessed in previous instances.
Yet, prevailing bearish pressures persist, evidenced by three consecutive downward candlesticks on the daily chart, further reinforced by the drop in active addresses.
This shift is also evident in the XRP/BTC pair, which, following a ten-day uptrend, is currently experiencing a cooldown phase.
The recent 8% uptick in XRP prices appears to be a result of funds shifting away from Bitcoin to other altcoins – a common strategy employed by investors seeking to diversify their investments.
Still, with Bitcoin dominance on the rise by 1.01% to nearly 61.20%, it signals a potential resurgence of Bitcoin as the market’s focal point.
Is XRP’s Stability at Risk?
Comparing to January, where whales aggressively accumulated over $1.5 billion in XRP, primarily held by wallets containing between 100 million to 1 billion coins, the current month paints a different picture, lacking substantial accumulation activities.
The absence of significant movements adds a sense of uncertainty and leaves traders pondering about the market’s next trajectory.
As Bitcoin regains the limelight, the upcoming days will be critical in determining whether investors will reinforce their stakes in Ripple or opt to remain cautious.
Amidst the absence of retail frenzy and limited whale support, Ripple faces the prospect of revisiting the $2.40 mark – or potentially breaking below it.