Ripple (XRP) is showing signs of recovery following a significant price drop on the 13th of January 2025, indicating a potential major rally ahead.
The reasons behind this optimistic outlook include an upcoming political event, a recent breakout from a bullish pattern, and a rebound in the market after a recent downturn.
Large XRP Purchase by Crypto Whale
The positive outlook has attracted investors and traders, leading to a notable accumulation of XRP tokens.
On the 14th of January 2024, during a market shift, Whale Alert reported a significant transaction where a crypto whale transferred 30 million XRP tokens valued at $76.15 million from the Upbit exchange. The wallet address for this transaction remains undisclosed.
Bullish On-Chain Indicators
Within the cryptocurrency realm, when sentiment changes and whales move assets from exchanges to wallets, it is viewed as a bullish signal. Additionally, traders are displaying a heightened interest and confidence in the asset, as highlighted by the on-chain analytics company CoinGlass.
The current XRP Long/Short Ratio stands at 1.10, indicating strong bullish sentiment among traders. At present, 52.50% of top traders maintain long positions in XRP, while 47.50% hold short positions.
XRP Price Movement and Technical Analysis
Looking at the daily XRP chart, the accumulation and increased long positions coincide with a critical resistance level. While the XRP price has faced reversals at this level before due to market uncertainty, the current sentiment appears different, fueled by the upcoming inauguration of President-elect Donald Trump on the 20th of January 2025.
XRP Price Forecast
According to technical analysis by CryptoCrypto, XRP is exhibiting bullish behavior and has retested the breakout point of a bullish flag and pole pattern. The breakout occurred on the 11th of January 2025, with XRP currently encountering horizontal resistance at the $2.60 mark.
If XRP manages to surpass this resistance and close a daily candle above $2.62, there is potential for a 70% surge towards the $4.50 level in the future.
Furthermore, XRP’s Relative Strength Index (RSI) is currently below the overbought threshold, suggesting room for the asset to rally towards the predicted level.
As of the time of writing, XRP was trading around $2.60, experiencing a price increase of more than 7.15% over the past 24 hours.
During the same timeframe, trading volume surged by 50%, indicating increased engagement from traders and investors in comparison to the previous day.