XRP price looks primed for higher highs as the buying pressure behind it increases
Market participants are flocking to invest in cryptocurrencies as the price continues to move higher. XRP has been one of the leading altcoins in the recent bull run, fueled by massive buying pressure from whales. At the time of writing, XRP price is changing hands at $1.13, recorded an increase of nearly 10% in the last 24 hours and 45% in the past seven days.
XRP/USD 4-hour chart | Source: TradingView
Ripple whales return to push XRP price higher
XRP has pumped to $1.189 today for an impressive 3-month high. Before it decoupled from the crypto pack, we saw hints of development activity skyrocketing. XRP’s team is now submitting the highest Github activity rate in the asset’s history.
XRP looks like it is entering a short period of consolidation after breaking above the psychological $1 resistance on Aug. 11. Its price action is characterized by lower highs and lower lows, leading to a symmetrical triangle formation on the 4-hour chart.
A sudden spike in buy orders has allowed XRP to break out of the consolidation pattern in the last few hours. By measuring the height of the triangle’s y-axis and adding it to the breakout point, the technical formation projects a nearly 20% target. Further upward pressure could catapult XRP towards $1.25.
Data analytics provider Bybt shows that the recent uptrend has mostly been driven by open interest in cryptocurrency derivatives exchanges. The total number of outstanding XRP derivative contracts has skyrocketed by $100 million since Jul. 21.
Although an increase in open interest and a price increase is said to confirm an upward trend, most of the participants entering the market are retail investors. Until whales start accumulating again, investors must take the recent price increase with a grain of salt.
Also, according to Santiment, XRP has the buying pressure it needs to reach its upside potential. Based on the supply distribution, the number of addresses holding more than 1 million XRP has surged by nearly 4.4% in the last three days. Roughly 14 whales have joined the Ripple network since August 10th.
The growing number of large investors backing Ripple may seem insignificant at first glance. However, considering these whales hold over $1.17 million in XRP, the buy orders spike significantly.
As long as the $1.14 support continues to hold, the bullish argument will prevail. Failure to hold above this critical support could lead to a spike in profit-taking, pushing XRP to the following key demand barrier at $1.05.
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