XRP bulls retain control as whale demand breaks out
- XRP bulls maintain firm control of market momentum, eyeing to reinforce a near-term breakout above the $1.60 level.
- XRP’s bullish outlook holds steady, with wallets with between 100 million and 1 billion coins increasing risk exposure.
- XRP reclaims the 50-week EMA as an immediate support level, while the MACD continues to reinforce a buy signal.
Ripple (XRP) ticks higher on Wednesday and trades near $1.60, aligning with the broader crypto market’s bullish outlook. The token builds on a strong technical outlook, reinforced by uptrending moving averages and key momentum indicators.
A daily close above $1.60 would reinforce the bullish momentum, while a pullback below the same level may trigger profit-taking. Traders should also watch the broader crypto market, as XRP will likely trend in unison with major crypto assets.
XRP whale accumulation gains traction
Appetite for crypto assets remains strong, as reflected in the Fear & Greed Index, holding at 71 in the Greed territory on Wednesday, down slightly from 78 the day before. As more investors take on risk, demand for XRP helps cushion against rising exchange inflows and potential profit-taking.
Large-volume holders with between 100 million and 1 billion tokens have since late July increased their XRP uptake and now account for roughly 14% of the total supply, up from 12% on September 1 and nearly 11% on August 1.
The whale cohort holding between 10 million and 100 million tokens shows steady but gradual XRP accumulation, now accounting for 18% of the total supply, according to Santiment. Further accumulation could support XRP’s short-term bullish outlook, increasing the odds of a sustained $1.60 breakout toward highs above $2.00.
The remittance token, XRP, posted a notable jump in spot Exchange-Traded Funds (ETFs) inflows to $20 million on Tuesday, following muted activity the day before and $44,000 in outflows last Friday. Cumulative inflows edged higher to $1.73 billion, with net assets averaging $1.73 billion.
Technical analysis: XRP edges higher as bulls hold firm
XRP holds a firm bullish bias as price extends well above the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs), with the long-term 200-day EMA at $1.36 reinforcing the underlying uptrend. Momentum stays constructive, with the Relative Strength Index (RSI) hovering near 68 in a near-overbought zone and the Moving Average Convergence Divergence (MACD) line in positive territory, hinting that buyers still control the near-term direction, albeit with rising risk of a pause or shallow correction.
On the downside, initial support emerges near the recent breakout region, with the 200-day EMA at $1.36 acting as a key dynamic floor. Below that area, additional demand lies around the 50-day EMA at $1.33 and the SuperTrend support line at $1.34, while the 100-day EMA at $1.28 marks a deeper, medium-term support zone that would need to hold to preserve the broader bullish structure.
Moreover, XRP holds above the 50-week and 200-week EMAs at $1.52 and $1.37, respectively, as well as above the former downtrend resistance line now offering support near $1.52.
Immediate resistance lies at the 100-week EMA at $1.59, and a weekly close above this barrier would open the way for a deeper push higher in the coming sessions. On the downside, initial support lies at the recent break level of the descending trendline around $1.52, followed by the 50-week EMA at $1.52 and then the more distant 200-week EMA at $1.37, where a stronger demand zone is likely to emerge if a broader pullback develops.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
