Will Whale Investors Spark a Rebound in Ripple (XRP) Price?
Ripple (XRP) price opened trading at $0.53 on Feb. 26, down 8% from its monthly peak of $0.58 recorded on Feb. 15. However, there are early signs that March 2024 could bring a positive start for XRP as whale investors begin to buy the dip.
XRP Price Underperforms Altcoin Market Average in February
In the first half of February, XRP price saw a positive performance, rising 19% from $0.49 to $0.58 between Feb. 1 and Feb. 16. However, since then, it has struggled to sustain the momentum and has fallen behind the overall altcoin market average in the second half of the month.
While the global altcoin markets have received capital inflows worth $194 billion in February 2024, representing a 26% growth, XRP’s month-to-date performance of 9% has fallen short of the market average. This decline in media attention and market demand can be attributed to capital flowing towards Ethereum and other top performers in the DeFi and Crypto AI sectors.
Crypto Whales Acquire 70 Million XRP Amid Price Dip
Despite XRP’s recent downward trend, there has been an interesting development as a strategic cohort of price-savvy crypto whales have been observed buying the dip aggressively. Wallets holding between 1 million to 10 million XRP coins have seen an increase in balances by 70 million coins between Feb. 16 and Feb. 26.
The whales have spent approximately $38.5 million buying the dip, indicating their confidence in a potential price upswing for XRP. Historically, the buying trends of this particular whale cohort have often preceded past XRP price rallies, suggesting that their actions could trigger a significant price increase.
XRP Price Forecast: $0.57 Resistance and Potential Upswing
Based on recent market trends, XRP price is more likely to enter an upswing toward $0.60 in early March 2024 rather than a downswing below $0.50. However, the $0.57 area remains a major short-term resistance for XRP bulls according to the Parabolic Stop and Reverse (SAR) technical indicator.
If the bulls can break above this resistance level, a retest of $0.60 could be possible. On the downside, a downward movement below the psychological support of $0.50 could invalidate this bullish forecast. However, with whale investors currently buying the dip, this scenario seems unlikely in the short-term.
🔥 Hot Take: Whale Investors Could Spark a Rebound for XRP Price 🔥
Despite its recent downward trend, there are reasons to believe that XRP price could experience a rebound in the coming weeks:
- Whale investors have been aggressively buying the dip, adding 70 million XRP coins to their balances between Feb. 16 and Feb. 26.
- This strategic cohort of whales has historically influenced past XRP price rallies, suggesting that their actions could lead to a significant price increase.
- The altcoin market average has seen substantial capital inflows in February 2024, indicating overall market growth.
Based on these factors, it is more likely that XRP price will see an upswing toward $0.60 rather than a downward movement below $0.50 in early March 2024. However, the $0.57 resistance level remains a challenge for XRP bulls.
With whale investors buying the dip and showing confidence in XRP’s potential, retail investors may be incentivized to adopt a bullish disposition, further boosting market demand for XRP.
Overall, the outlook for XRP price seems positive, and if the current trend continues, we could see a significant rebound in the coming weeks.
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