Today, July 30, 2024, the cryptocurrency market has taken a significant hit, with an overall drop of 2.8%. Major cryptocurrencies like Bitcoin (BTC), Solana (SOL), and Binance Coin (BNB) have seen their prices fall by 4%, 5.1%, and 3.5% respectively. Amidst this downturn, Ripple’s XRP is showing signs of potential growth, drawing attention from investors.
70 million XRP token moves from the exchange
A blockchain transactions tracker, Whale Alert, reported several large XRP transfers from Binance to private wallets. In the past 24 hours, whales have moved a notable 70 million XRP tokens, worth $42.48 million, in three separate transactions. Such large transfers from exchanges to wallets usually indicate that investors are holding onto their tokens, suggesting a bullish outlook for XRP.
The technical analysis supports this positive view. The XRP price chart shows a bullish symmetrical triangle pattern on a daily timeframe. This pattern often precedes significant price movements. If XRP’s daily candle closes strongly above the $0.618 level, it could rise to $0.73 and even $0.85 in the coming days. This optimistic scenario is bolstered by XRP’s current position above the 200 Exponential Moving Average (EMA) on the daily chart, a key indicator of bullishness.
Other technical indicators like the Relative Strength Index (RSI) and Stochastic suggest that XRP is in a neutral condition, meaning it is neither oversold nor overbought. This neutral stance indicates that XRP has room to move in either direction, but the recent whale activity and technical patterns lean towards a positive breakout.
Investor hint significant bull rally ahead
Tony Severino, an investor and founder of CoinChartist, highlighted that XRP’s monthly Bollinger Bands are the tightest they have ever been. Bollinger Bands are a volatility indicator, and tight bands usually precede major price movements. Severino noted that the last time this happened, in 2018, XRP’s price skyrocketed by 60,000%, adding weight to the bullish sentiment around XRP.
$XRP monthly Bollinger Bands are the tightest everTighter than before the historic 60,000% rally that ended in early 2018 pic.twitter.com/OFTTkcDxDU
— Tony "The Bull" Severino, CMT (@tonythebullBTC) July 30, 2024
According to on-chain analytics firm CoinGlass, key price levels to watch are $0.591 and $0.615. If XRP’s price rises above $0.615, it could trigger the liquidation of $12.9 million in short positions, potentially driving the price even higher. Conversely, if the price falls below $0.591, $6.1 million in long positions could be liquidated, adding downward pressure.
As of now, XRP is trading near $0.60, having dropped 1.7% in the last 24 hours. However, trading volume is up by 9%, indicating higher participation from investors and traders. Increased trading volume during a price drop suggests that many are buying the dip, further supporting the bullish outlook.
Despite the overall market downturn, XRP shows promising signs of a potential breakout, supported by both technical analysis and significant whale activity. Investors will be closely watching key levels and market sentiment in the coming days to gauge XRP’s next move.
