Reasons why XRP’s 14% uptick could turn into a full-fledged bull run
Ripple [XRP] is finally regaining its affinity for the upside after about three weeks of weak price action. The cryptocurrency slipped out of its short-term ascending channel after a bearish performance at the end of August. XRP’s bullish performance in the last three days has pushed it back to the previous range. But the question remains — can it sustain the current momentum?
XRP pulled off a 14% uptick from its $0.31 weekly low to its current 24-hour high of $0.36. It is now trading above the same line that previously acted as support. XRP previously demonstrated bullish weakness in the last 10 days of August before capitulating and forming the next support level at $0.31.
Source: TradingView
XRP’s upside in the last 24 hours was capped after coming into contact with the 50-day Moving Average (MA). Its previous attempt to cross back above the 50-day MA was thwarted, leading to more price weakness.
XRP has already given up some of its gains after experiencing an increase in sell pressure. The similarities between the two instances highlights the potential for a bearish retracement.
On the other hand, XRP’s Relative Strength Index (RSI) indicates a stronger momentum at its current price level. Its Money Flow Index (MFI) also underscores more accumulation compared to its end of August performance. This outcome may support more upside.
On-chain metrics reveal an increase in which activity in the last three days. The whale transaction count for trades worth more than $1 million registered an influx of whale activity which likely contributed to the rally.
Source: Santiment
The whale activity aligns with observations in XRP’s whale supply distribution, as well as its latest price action. For example, whales holding between 1 million
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