XRP investors have done their best to boost the asset’s price, but will it be enough to spark a rally?
Ripple investors are taking the bull by the horns
The price of XRP has already been significantly influenced by whale investors and is expected to continue to be so in the future. Addresses with 1 to 10 million XRP have accumulated over 100 million XRP in the last week.
The $52 million offering raised Ripple’s whale assets from $3.63 billion to $3.73 billion. Initially, this increase appeared to have an immediate impact on price; however, a much larger effect may actually occur gradually.
Historically, the accumulation of crypto whales has resulted in rallies and sell-offs, so the price of XRP could rise again.
In addition, the altcoin enjoys significant support from its retail investors, as evidenced by the asset’s funding rate, which has been steadily increasing since mid-April.
As a reminder, the funding rate is a periodic payment that buyers and sellers exchange in perpetual futures contracts to keep the contract price close to the asset’s price. It thus helps to maintain a balance between long and short positions in the market.
A positive funding rate therefore indicates that the market is dominated by long contracts at the expense of short contracts and vice versa.
Learn more: How to buy XRP from Ripple?
So it is clear that XRP holders expect the price to rise because they are betting on it.
XRP Prediction: Waiting for a bull run
XRP price is at $0.52 and moving in an ascending triangle pattern. An ascending triangle is a bullish chart formation characterized by a horizontal resistance line and an ascending support line. Thus, this figure indicates a potential upward movement with the hope of a break above the resistance level.
So, following this pattern, XRP could see a 12% increase when it reaches the $0.61 target. However, to achieve this, the altcoin would need to secure the 23.6% Fibonacci retracement line as support.
More information: Ripple Prediction 2024/2025/2030
This area, also known as the bottom of the bear market support, can allow XRP to recover as long as it holds above it.
However, if it loses that support, then a pullback could see the altcoin drop as low as $0.50. A drop below this level would not only negate the bullish thesis, but also push the price to a two-month low of $0.47.
Moral of the story: Ripple always moves at the pace of its investors.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult with an expert before making any financial decision.