Ripple's XRP could rally to $2.58 following a rise in whale buying activity
- Ripple's XRP has seen increased buying activity among whales in the past two weeks.
- Bitwise announced a rebranding of its European XRP ETP amid speculations of a 2025 XRP ETF approval in the US.
- XRP could extend its rally to $2.58 if it overcomes the upper boundary of an ascending channel.
Ripple's XRP rallied 6% on Wednesday following increased buying pressure among whales in the past two weeks. The remittance-based token could stage a move to $2.58 amid increased institutional interest in the launch of an XRP exchange-traded fund (ETF) in the US.
XRP whales step up buying pressure, Bitwise rebrands XRP ETP in Europe
XRP's supply across its largest exchanges, Binance and Upbit, has been trending downward in the past two weeks. According to CryptoQuant's data, XRP's exchange reserve has plunged by over 500 million XRP since November 13. A decline in an asset's exchange reserve indicates that buying pressure is rising.
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XRP Exchange Reserve (Binance) | CryptoQuant
Santiment's data shows that most of this buying activity came from whales who have increased their holdings by over 700 million XRP in the same period. The increased buying activity among whales suggests growing confidence in XRP's potential to stretch its rally.
 [20.50.46, 27 Nov, 2024]-638683480957046975.png)
XRP Supply Distribution | Santiment
The remittance-based token began its uptrend after Donald Trump emerged as the winner of the US presidential election, stretching its monthly gains above 180% since then.
It's important to note, however, that investors have realized over $1.5 billion in profits along the way, as noted in a report earlier. If the profit-taking heightens as XRP rallies, it could cause potential downward pressure on its price.
Meanwhile, in a press release on Wednesday, asset manager Bitwise announced the rebranding of its Europe-based XRP ETP. Formerly called ETC Group Physical XRP, the Bitwise Physical XRP ETP is 100% physically backed and will continue trading on the German Deutsche Börse exchange.
The asset manager also confirmed that Ripple will be an investor in the newly branded XRP fund.
"Global demand for exposure to the crypto asset class has exploded in 2024, fueled by a growing interest in crypto-backed investment offerings," said Ripple Labs CEO Brad Garlinghouse in the press release. "With the U.S. regulatory environment for crypto finally becoming more clear, this trend is poised to accelerate, further driving demand for crypto ETPs, such as the Bitwise Physical XRP ETP."
XRP could rally to $2.58 if it breaks above key channel
Ripple's XRP is up 6% following $10.91 million in XRP futures liquidations in the past 24 hours, per Coinglass data. Liquidated long and short positions accounted for $3.87 million and $7.04 million, respectively.
XRP has been trading within a key channel in the past week after a recent sideways movement near the $1.35 level.
XRP/USDT 4-hour chart
A high volume move above the upper trendline resistance of this channel will see XRP surging above its three-year resistance of $1.96 to a high of $2.58. However, a move below the lower trendline of this channel could spark a 30% decline to $0.93.
The Relative Strength Index (RSI) is above its neutral level, indicating bullish momentum is prevalent in the market.
A daily candlestick close below $0.93 will invalidate the thesis.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
