- XRP faces resistance at $2.51; breakout could lead to $2.66 or $2.70.
- Whale transfer of 69.3M XRP boosts bullish sentiment, signaling potential gains.
- Derivatives market sees increased volume, with long positions dominating sentiment.
XRP has recently made significant moves in the market, trading above key support and resistance levels. As highlighted by EGRAG CRYPTO, an analyst, the current price action on the 1-hour timeframe shows XRP consolidating between important levels.
As the market watches, XRP’s price could see further movement depending on whether it holds key zones. Recent whale activity has also caught traders’ attention, fueling potential bullish sentiment.
Support and Resistance Levels to Watch
As per EGRAG CRYPTO analysis, the key resistance level for XRP is at $2.51, which has recently been tested but not sustained. If the price manages to break above this point, it could target the next resistance at $2.66 and further reach $2.70.
However, the market has shown a tendency to pull back once approaching these levels. On the other hand, support at $2.27 remains crucial, as it has historically been defended by buyers. A breakdown below this level could send the price towards $2.17, and possibly even to $1.96, which represents the strongest support zone.
The 21-period Exponential Moving Average (EMA) now standing at $2.41 is instrumental in the analysis. The price has remained above this EMA which is indicative of bullish trend. If the price retests the EMA and bounces back, then it would be an indication that the price is within a support zone.
However, the price has stayed in a channel between $2. 51 (the resistance level) and $2. 27 (the support level) indicating a struggle between the buying and selling pressure. If the price forms a high above $2.51, one could infer that there was buying pressure in the market while a breakdown below this level may suggest that bearish pressure is still dominant.
Bullish Sentiment Strengthened by Whale Activity
In addition to technical levels, recent whale activity has added fuel to the bullish outlook. A significant transfer of 69.3 million XRP, worth approximately $176 million, was recorded moving from an unknown wallet to Binance. Such large movements often signal the potential for significant price action, as whales tend to accumulate or offload assets based on market expectations.
Increased Trading Volume and Derivatives Data
As per Coinglass data, XRP’s derivatives market shows a surge in activity, with open interest increasing by 9.57% and trading volume spiking +110.57%. The market sentiment appears to be bullish, particularly with the options market, where volumes rise by 17.41%.
Notably, the long/short ratio for XRP on Binance is currently skewed towards long positions, suggesting that top traders are expecting further upward movement. Despite the strong buying sentiment, liquidation data shows a balance between bulls and bears, indicating high volatility.
