Ripple’s price experienced a strong recovery this week, driven by increased whale activity.
Ripple’s (XRP) price experienced a strong recovery this week, driven by increased whale activity. The XRP token surged to $0.5705 on Tuesday, its highest level since April 12th, marking a 50% increase from its lowest point this month.
Ripple’s performance coincides with significant whale accumulation. Data from Santiment reveals that large XRP wallets bought over $300 million worth of tokens between July 12th and 15th.
🐳 This level of XRP accumulation does appear to have had a positive impact on their +36% surge that ran from July 7th to 13th. Keep an eye on whether these key stakeholders continue accumulating.
Large transactions like these often indicate that insiders are buying ahead of a major event.
This trend is also reflected in technical charts. The accumulation/distribution (A/D) indicator has reached a record high, showing strong accumulation. Additionally, XRP has surpassed key resistance at $0.4845, its lowest swing in January, and has moved above the 200-day and 50-day Exponential Moving Averages (EMA). The Average Directional Index (ADX) is at 34, suggesting strong momentum.
The ADX is a popular trend indicator that determines the strength of a trend. A figure of 25 and above is usually a sign that an asset has a strong momentum.
Ripple rises amid risk-on sentiment
Ripple’s rally occurred in a risk-on market environment. The US dollar index (DXY) has decreased to $104.40 from a year-to-date high of $106.30.
XRP price is overbought. Despite the recent rally, there is a risk that XRP’s price may pull back soon. The Relative Strength Index (RSI) has moved to 72, indicating overbought conditions, and the Stochastic oscillator lines have also reached the overbought level.