XRP Whales Go Into Buying Frenzy, Further Gains Ahead?
Ripple's XRP turned a key resistance barrier into support after more whales entered the fray.
- XRP is up nearly 29% over the past two weeks aiming for new yearly highs
- Large investors seem to expect a further advance and are accumulating millions of dollars of XRP
- Despite the optimism around Ripple's XRP, technicals suggest a pullback before higher highs
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Big investors are accumulating XRP at a staggering rate after the price of the token broke above a multi-month resistance barrier.
XRP Finally Breaks Out
Following a nearly three-month-long downward trend, Ripple’s XRP is back in the green. The cross-border remittances token broke above its 50-three-day moving average on July 17. Since then, its price has done nothing but shoot up. XRP hit a high of $0.25, representing a nearly 29% upswing.
The cryptocurrency was also able to turn its 100-three-day moving average into support within the same time frame. Moving past this hurdle suggests that this altcoin could advance further towards the next resistance barrier represented by the 200-three-day moving average. The resistance level currently sits around $0.28.
The optimistic outlook that the international settlement token presents has not gone unnoticed. Data reveals that large investors have been accumulating XRP over the past two weeks. If this trend continues, it could help propel the coin to higher highs.
Whales Fill Up Their Bags
Santiment’s holder distribution chart shows that the buying pressure behind XRP is rising dramatically. The behavioral analytics firm recorded a significant spike in the number of addresses with millions of dollars in this token, colloquially known as “whales.”
Since July 18, the number of addresses holding 1 million to 10 million XRP has been steadily increasing. Roughly 30 new whales have joined the network, representing a 3.7% increase in a short period.
The sudden spike in large investors may seem insignificant at first glance. Still, when considering that they hold between $240,000 and $2.4 million in XRP, the increase in buying pressure can translate into millions of dollars. If the buying spree by these large investors continues, Ripple’s token may finally catch up with the rest of the market and reach new yearly highs.
A Pull Back Before Higher Highs?
It is worth mentioning that the TD sequential indicator is currently presenting a sell signal on XRP’s 3-day chart. The bearish formation developed as a green nine candlestick, which is indicative of a one to four candlesticks correction.
An increase in sell orders could help validate this signal. If so, the cross-border remittances token may pullback towards its 100-three-day moving average before it continues trending upwards. The retracement could help maintain the uptrend healthy and allow sidelined investors to get back into the market.
Now that XRP seems to be on the cusp of a bullish macro trend, it is imperative to implement a robust risk management strategy to avoid a market shake out.