In recent weeks, Ripple’s XRP token surged past the $0.60 mark following a favorable court ruling. However, the market has experienced significant volatility since then, impacting XRP as well. Despite a recent uptick, the market saw a decline today. In response, XRP whales have made substantial purchases, accumulating large amounts of the token within the last 24 hours.
Why Are Whales Buying XRP?
Recent data reveals that XRP whales purchased more than 50 million tokens over the past day, translating to an increase of over $29.5 million at current prices. This move indicates that whales are leveraging the price dip to their advantage.
Additionally, Los Angeles-based Fruition Production announced an upcoming XRP documentary, which coincided with the whale purchases. This development has added another layer of interest in XRP.
How Are Traders Positioning Themselves?
According to Coinglass, investors and traders have been favoring long positions over short ones in the past week. The key liquidation levels for traders currently stand at $0.575 on the downside and $0.604 on the upside.
Should XRP’s price fall to $0.575, around $18 million worth of long positions will be wiped out. Conversely, if the price ascends back to $0.604, approximately $13.3 million in short positions will be liquidated.
Key Takeaways for Investors
- Whales accumulating XRP suggests confidence in the token’s future.
- Technical indicators show a bullish trend, supported by the 200 EMA.
- Upcoming XRP documentary could drive further interest and demand.
- Key liquidation levels to watch: $0.575 and $0.604.
- Potential for a significant price increase if daily candle closes above $0.645.
Technical analysis indicates that XRP maintains a bullish outlook, staying above the 200 Exponential Moving Average (EMA) on the daily chart. An inverse head and shoulders pattern has also emerged, suggesting further upward potential.
In the short term, a price drop to $0.558 remains possible. However, in the long term, XRP appears to be on an upward trajectory. If the daily candle manages to close above $0.645, XRP could see a surge to $0.90, representing a 40% increase.
As of now, XRP has risen by 1.29% in the last 24 hours due to whale accumulation and is trading at $0.5992. The trading volume has also spiked by 18.48%, reflecting growing investor interest.
