As of the last 48 hours, Sentiment data shows that XRP whales have bought 360 million tokens. This large-scale accumulation indicates that institutional investors and high-net-worth individuals have confidence in the token.
Whale buying has always been a buy signal. It shows that there might be an upward rally for the XRP price.
This whale activity improves the liquidity of the XRP increasing the stability of the market and encouraging more participation.
As large investors buy more XRP, other traders, including retail traders, may see it as a buying opportunity and continue the buying spree.
XRP Price Climbs to $2.40 Amid January Effect and Regulatory Shifts
XRP price surged to $2.41, the highest since December 18. It currency climbed 26% from the previous week’s low.
This is in line with the January Effect where investors who had been on the holiday break are known to rebalance their portfolios and in the process buy more of high growth assets such as cryptocurrencies.
Also, there are reasons to be optimistic amid positive change in the legal framework. The upcoming inauguration of Donald Trump and the expected departure of SEC Chair Gary Gensler have both given new life to the crypto.
The anticipated nomination of Paul Atkins as the new SEC Chair has also boosted the positive sentiment as Atkins has given his nod towards the crypto sector.
Ripple ETF Optimism Adds Fuel to XRP’s Rally
The increasing chances of an XRP ETF approval are also adding more fuel to the fireXRP rally. According to Polymarkets, the probability of XRP ETF approval is 70%, which indicates a gradual increase in investor sentiment.
If approved, an XRP ETF could also pull in huge institutional capital. This has been the case with Bitcoin and Ethereum ETFs adding $35 billion and $2.6 billion respectively.
Moreover, following the XRP ETF speculations, WisdomTree has joined the growing list of asset managers seeking SEC approval for a spot XRP ETF.
This move highlights the increasing institutional interest in XRP as a legitimate asset class. The recent launch of the WisdomTree Physical XRP ETP further underscores the firm’s commitment to providing secure investment avenues for XRP.
With the potential for regulatory shifts under Donald Trump’s administration, XRP price could experience heightened bullish sentiment.
One of the key factors of the price growth is the development of the Ripple ecosystem. The Ripple network stablecoin (RLUSD) has been added to several exchanges such as Bullish and Uphold.
These new developments will cement Ripple’s position in decentralized finance (DeFi) and increase the utility of XRP.
Technical Analysis Points to $3 Target for XRP
According to technical analysis, XRP price could keep on rising. This asset has developed a bullish pennant that is defined as an upward price movement with consolidation afterward.
This formation often leads to a breakout, and analysts expect the price to hit $3 soon. The same positive outlook is supported by the market sentiment as the next resistance levels have been identified at $2.90 and $3.
A breach of these levels may lead to further growth, and raise the XRP price to $3.7. According to the Moving Average Convergence Divergence (MACD), the bullish momentum for XRP remains intact.
The MACD line (blue) crossing above the signal line (orange) indicates a shift toward positive momentum, with the histogram displaying green bars, signifying growing strength in buying pressure.
Additionally, the MACD hovering in positive territory suggests that the market’s trend is favoring the bulls, reinforcing the possibility of further upside.
Regarding the Bull-Bear Power (BBP), the indicator also aligns with the bullish sentiment as it remains in positive territory, reflecting that buyers are overpowering sellers.
A high BBP value, such as the current reading, suggests strong market demand. This adds weight to the ongoing upward momentum and reinforces the bullish case for XRP price in the short term.
