- XRP price shows signs of a potential 30% advance after going through a short-lived correction.
- The behavior of different whales since the beginning of the year supports the bullish scenario.
XRP is trading at $0.30 after getting rejected from the upper boundary of an ascending parallel channel where its price has been contained since late December. Despite the recent downswing, the cross-border remittances token seems poised to reverse and break out of this technical pattern.
XRP price prepares for a comeback
Ripple price dropped almost 15% after hitting a roadblock from the ascending channel’s upper trendline. The downswing seems to have been anticipated by the TD Sequential indicator, which flashed a sell signal as XRP approached the overhead resistance.
Now, the medium and long-length EMAs could provide enough support to slow down the downward pressure and trigger a rebound.
XRP/USD 4-hour chart
If XRP price closes above the channel’s middle-line, sidelined investors may re-enter the market and push the token towards the $0.38 resistance level.
Santiment’s holder distribution chart adds credence to this thesis as it shows that XRP whales have been accumulating since late December. Indeed, the number of addresses on the network with 10,000 to 1,000,000 XRP started rising since then, while those with more than 1,000,000 tokens began to catch up on January 1.
A further spike in buying pressure from these high net worth individuals could be significant enough to allow XRP price to recover.
XRP Holder Distribution chart
Under such circumstances, XRP price could suffer a 30% correction that sends it back below the $0.20 mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.