Lorenzo Stroe
Independent Analyst
- Ripple price was contained inside a wedge pattern on the 1-hour chart.
- The breakout of the pattern is significant because XRP faces very weak resistance above until $0.75.
- XRP price action is extremely volatile and hard to predict, investors must dread carefully.
On January 30, XRP had a massive pump pushing the digital asset by 85% thanks to the WallStreetBets group and other Pump and Dump groups over Telegram which coordinated a push for the digital asset.
From a low of $0.278 on January 30 to a high of $0.755 on February 1, the pump lasted less than three days as XRP price quickly plummeted down to $0.35.
Ripple price sees the light at the end of the tunnel
On the 1-hour chart, XRP formed an ascending wedge pattern and traded inside a tightening range. Ripple price finally had a clear breakout with a price target of $0.44. However, the most important bullish factor is the lack of resistance above this point.
XRP/USD 1-hour chart
It also seems that the number of whales holding at least 10,000,000 XRP coins has exploded by 16 in the past five days despite XRP price exploding. This metric shows that large holders have become interested in the digital asset again despite the SEC suing Ripple.
%20[17.30.06,%2004%20Feb,%202021]-637480623993049383.png)
XRP Holders Distribution chart
However, it’s important to note that XRP price is extremely volatile right now after the initial pump and dump and it could steeply drop at any point.
%20[17.39.14,%2004%20Feb,%202021]-637480624015250187.png)
XRP Social Volume
The social volume of XRP has spiked again in comparison to the past 48 hours which indicates more volatility is underway and potentially another steep drop like it happened the last four times after spikes in volume. XRP price can easily fall towards the psychological level at $0.30 again.
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