Can Whales Drive XRP Price to $2? An Analysis of Ripple’s Potential Price Movement
In November, Ripple’s XRP experienced an impressive surge of almost 200%, reaching a high of $1.63, the highest in four years. Such a significant increase typically triggers profit-taking by holders, which could lead to a price correction.
However, recent activities by whales in the market paint a different picture. Analysts observed that whales acquired more than 50 million XRP over the weekend, indicating that big players anticipate further growth.
Analyzing XRP’s Price Movement
Currently, XRP is trading at $1.5, midway between its peak of over $3 in 2018 and 20% below its highest point in the 2021 cycle at $2. Therefore, the $2 mark has become a primary bullish target for XRP, especially if the upward trend persists.
The impressive price momentum, as indicated by the Stochastic RSI and a surge in OBV (On-Balance Volume), signals robust buying pressure and the likelihood of reaching or surpassing the $2 threshold.
However, there is a slight concern for bulls. The candlestick from the previous week closed below $1.5, similar to the trend in the past two days. This indicates a struggle at the $1.5 level, and breaching it will influence the next price movement.
Looking at the daily chart, the bulls seem to have the advantage. The price gap below $1.4, known as the Fair Value Gap (FVG), has served as a significant re-entry point for bullish investors.
A sustained momentum at this level could pave the way for the price to target higher levels, potentially reaching $1.96.
Moreover, there is a concentration of leveraged long positions just below $1.5, providing market makers with an opportunity to trigger a liquidity hunt. On the flip side, leveraged short positions are clustered above $1.6. Therefore, XRP might witness a liquidity sweep around $1.4 before aiming for $1.6 or even $1.9.
In summary, XRP appears poised for further upward movement, partly fueled by increased whale demand. However, the sustainability of this momentum depends on XRP convincingly surpassing the $1.5 mark.
Note: This article reflects the author’s personal opinion and does not constitute financial or investment advice.