Grayscale had taken advantage of the recent XRP developments with a massive purchase at a lower price
XRP price has faced some huge pressure over the past few days and weeks as the recent lawsuit with the SEC is not over. Currently, XRP is trying to gain some momentum, with the bulls pushing and pushing the token higher overnight after a breakout on a major technical pattern. At press time, XRP is trading at around $ 0.2362, up more than 6% over the past 24 hours.
XRP price in the medium term will certainly depend largely on whether the bulls can sustain their momentum
With its current price point of $ 0.2362, XRP marked a massive rally from the weekly low of $ 0.17 established just days ago. XRP has held steady above the $ 0.2 support level and perhaps the biggest source of buying has come from the leading digital asset manager, Grayscale.
— CryptoWhale 🐳 (@CryptoWhale) January 1, 2021
By according to Crypto Whale, Grayscale Trust has made their largest purchase of $ XRP ever after scooping up another 12.48 million coins on New Year’s Eve after a massive panic sell-off.
Or one of the other reasons that made XRP soaring last night is perhaps due to a combination of a technical breakout and a short squeeze. Funding rates for short positions across margin trading platforms had been quite extreme, which may explain this rally.
Analyst Jonny Moe also noted that it is stepping up a symmetrical triangle pattern ahead of the move. This may have sparked a series of buying pressure from revolving traders.
“XRP symmetrical triangle could really break either direction, no real bias here. Either direction should give a nice little pop. Money to be made here.”
The next few days will seriously shed some light on the prospects for XRP and its massive underlying weakness that could have left every bounce off the hook.
Elsewhere, apart from Kraken, nearly every major US exchange has announced plans to delist XRP by the end of this month. This will force the holders to sell, hold in the hopes Ripple wins the lawsuit with the SEC, or use decentralized exchange platforms.
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