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Ripple Price Remains Stable Amid Market Pump But Early Bullish Signs Spotted

Last Updated February 27, 2024 2:58 PM
Nikola Lazic
Last Updated February 27, 2024 2:58 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • XRP shows signs of a potential uptrend amid volatility.
  • A whale transferred 30 million XRP, indicating possible accumulation.
  • Ripple at a key resistance level and a breakout could signal new uptrend.

While the crypto market has risen 41% since January 23, XRP has been underperforming. It was in a more significant downtrend from November 3, reaching a reached a low of $0.48 on February 1. 

A recovery followed to a high of $0.56 on February 20, but it is still at that level after a minor setback. Even though Ripple’s price has remained in this sideways range since mid-February, there are some bullish signs. 

With its price previously falling to a low followed by a recovery, is a much larger uptrend yet to come?

Ripple Whale Activity

According to Whale Alert , one whale transferred 30,000,000 XRP worth £16,012,232 in just one go. The transaction was a withdrawal from the Bybit derivative exchange into a private wallet. 

 

Withdrawals from exchanges to private wallets usually indicate accumulation, as investors are taking their coins back to cold storage. Although more details are lacking, this single transaction offers an insight into the broader sentiment and hints at potential price volatility. 

XRP Price Analysis 

The price of Ripple has been in a downtrend since its November 3 peak of $0.73. It bottomed out on January 31, when it reached a low of $0.48. This downtrend formed a descending resistance, which is currently being interacted with, as we saw a recovery in February. 

Ripple daily chart.
Ripple is at a key resistance level

This is the second attempt to break it. First, it tried to do so on February 15, but failed. However, the rejection didn’t lead to a lower low. Instead, it formed a higher low. 

We could have seen the start of a new uptrend, with the pre-February 15 recovery being its first sub-wave. That would make the current rise its third wave, which should make the price go significantly higher. 

Our first target is $0.66, while the next is $0.71, which would be an increase of 28% from the current levels. In order to anticipate this rise, however, we first need to see a breakout above the descending resistance. 

If the price gets rejected again, XRP could be headed to a lower low than on February 1. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

 

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