While XRP’s RSI suggests strengthening buying strength, whale activity has reached record levels. The focus now shifts to whether the coin can maintain its uptrend and test higher levels.
XRP’s RSI regains color
XRP’s RSI increased significantly from 41 to 58.9 in a single day. This indicates to us a notable increase in the upward momentum. This sharp rise reflects increasing buying pressure as XRP approaches the overbought zone but is not there yet.
This change in trend indicates the transition from a neutral phase to a bullish phase with potential gains at stake. This, provided that the dynamic continues.
The RSI, or relative strength index, measures the speed and magnitude of price changes. It ranges from 0 to 100. Values below 30 generally indicate oversold conditions. Conversely, values above 70 suggest overbought levels and the likelihood of a future pullback.
XRP’s RSI at 58.9 places the asset in a moderately bullish zone. Thus, it could have further room to advance before possibly reaching an overbought condition. While sustained momentum will help break through future resistance, a failure to maintain momentum could result in consolidation.
Whales are breaking records
The number of XRP whales (addresses holding between 1 million and 10 million XRP) reached an all-time high of 2,054, up from 2,004 just four days ago.
This increase in large holders signals increasing interest and accumulation from very large players. Generally, investors consider a development of this kind to be very positive with a renewed confidence in the asset. Such accumulation can act as a bullish indicator. This is because whales tend to influence market sentiment and price movements due to their substantial holdings.
Tracking whale activity is crucial because these large holders very often have a significant impact on liquidity and price trends. When the number of whales increases, it suggests increased demand and long-term confidence in the asset.
From now on, we will have to carefully monitor the activity of these whales and see if they continue to accumulate or if they opt to sell.
The XRP EMA lines are currently in a bullish pattern, with short-term EMAs positioned above long-term ones. This alignment suggests strong bullish momentum for the Ripple coin. If the $2.6 resistance is sustainably breached, this could open the door to further gains.
The next potential target would be to reach $2.72. This would reinforce the bullish outlook for the asset and extend the trend.
However, if the current uptrend weakens, the XRP price could retrace to stay at $2.35. If this support lets go, $2.2 will be worth watching so as not to go lower. If the asset leans towards a deeper correction, the level at $1.99 will also be worth keeping in mind.
Moral of the story: it’s all or nothing for XRP.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
