In the past week, whales have acquired approximately $11 million worth of Ripple (XRP), as revealed by crypto analyst Ali Martinez. Drawing on data from the on-chain analytics platform Santiment, Martinez highlighted that the total value of these tokens amounted to approximately $6.82 million.
Usually, when a substantial number of these whales engage in accumulation, it serves as an indicator of a change in market sentiment and a potential uptick in value. Traders may consider adjusting their strategies to potentially capitalize on this anticipated market shift.
Nevertheless, as per CoinMarketCap, the impact of this buying spree has not yet manifested in XRP’s value. As of the current moment, XRP is valued at $0.62, suggesting that the token has maintained consolidation in the same range for the past week.
Increased Buy Orders Have the Potential to Propel XRP to $0.67.
From a technical perspective, the upcoming movement of XRP remained uncertain. However, a notable observation from the XRP/USD 4-hour chart suggests that in the short term, it might pose a challenge for the token to trade below $0.57.
This speculation arises from the presence of bullish activity around this level, established as support on November 21. Additionally, the support at $0.57 played a crucial role in the upward surge of XRP between November 21 and 23.
Examining the Awesome Oscillator (AO), Coin Edition noted a bullish twin peak formation between November 17 and 24, contributing to XRP’s ascent from $0.57. However, the upward trend could not extend beyond the 24th due to a deceleration in the initial buying momentum.
If the trend of significant whale purchases persists, mirroring the pattern of the last seven days, XRP’s momentum might shift towards bullish territory. In such a scenario, there could be a swift retest of $0.67. Conversely, if these substantial buys cease, XRP might retreat back to $0.60.
What Else Matters?
As illustrated in the chart above, the On Balance Volume (OBV) suggests a higher likelihood of an upward movement for XRP rather than a decline. This is evident as the OBV has been consistently transitioning out of the negative volume flow.
The rise in the OBV reading indicates a growing inclination among market participants to buy XRP rather than sell. Should the buying pressure intensify, the OBV reading could exit the negative territory, potentially opening the path for XRP to target levels beyond $0.70.
Furthermore, the trajectory of XRP’s movement may also hinge on Bitcoin’s (BTC) attempt to breach the $37,000 threshold. If BTC advances toward $40,000, there’s a possibility for XRP to exceed $0.80 and undergo a new yearly peak, given the robust correlation between these two cryptocurrencies.