May 16, 2022

Ripple (XRP): $1 Inevitable as Large Wallets Enter Buying Spree

  • XRP price seems ready for higher moves, but the volume point of control at $0.76 hinders the rally.
  • Enthusiasts can await a 35% upsurge towards $1 in the upcoming weeks.
  • A daily candlestick closing under $0.51 will annul XRP’s bullish thesis.

Ripple (XRP) remains restrained between two vital zones, delaying upward moves. Nevertheless, another upward movement by Bitcoin could launch a rally that pushes the remittance token towards long-awaited obstacles.

Ripple Struggle to Surpass POC

XRP has its price actions stuck in the $0.54 range low and $0.91 range peak. The cross-border transaction token has hovered inside this range since the boundary appeared on 8 February. The latest plunge into the ‘buy’ territory, stretching between $0.62 and $0.68, translated to a 17% upsurge, indicating XRP’s bullish resurgence.

However, buyers could not sustain their momentum, triggering a correction beneath the $0.76 volume point of control. Ripple remains stuck between the mentioned zone and the $0.73 retracement. A decisive daily candle closing beyond $0.76 would suggest a breakout and catalyze an upward move towards the initial resistance zone at $0.91. XRP should retest and flip the level into support to support more gains.

Such a move would mean a free ride towards the psychological area at $1. Such an uptick would mean a 35% upsurge from $0.75, the current position. Moreover, this level would likely cap the token’s upside actions.

The supply distribution metric supports XRP’s bullishness. This index track whales’ accumulation. A surge in the metric shows investors accumulating and could boost Ripple’s market value. While publishing this content, wallets holding over 10 million Ripple coins surged to 340 from 317 (since mid-February). The 7.2% increase reflects more whales purchasing XRP, a bullish narrative.

Moreover, the 365 MVRVR, which gauges average loss/profits by traders that bought tokens the previous year, hovers at -17%, a 5% increase within the past week. Santiment’s research shows a figure beneath -10 shows near-term holders see losses, and long-term investors accumulate amid such conditions. Thus, moving under -10% means a ‘buy’ opportunity.

According to the charts, the past drops to -20 trigger explosive rallies, and history repeating itself would see Ripple on similar uptrends.

While things seem up for Ripple because of BTC’s latest bullish momentum resurgence, enthusiasts should be careful. A daily candle closing beneath $0.60 will cancel XRP’s bullishness. That can see the token crashing towards the $0.55 range lows before rethinking directional trends.