|

XRP Price Prediction: This is why XRP whales could be expecting a 20% rally

  • XRP price has rallied by nearly 22% in the last three days, causing the market to overheat.
  • Unlike other altcoins, XRP whales haven’t made any significant movement, which historically has favored a price rise.
  • Sell signals can be observed on the on-chain indicators as the market value of the asset is currently at a six-month high.

XRP price has been rising impressively, drawing investors towards the crypto asset. However, these traders might want to brace for a potential pullback following the recent rallies despite the Ripple community preparing for a win against the SEC.

Ripple vs. SEC to end in favor of the crypto community

Ripple supporters are pining for a win in the ongoing Securities and Exchange Commission (SEC) lawsuit. Despite the recent session noting no major development, Ripple President Monica Long stood with the community expecting an optimistic turnout. This is also because Ripple is prepared to even move out of the country should they lose the case, making sure business won’t be affected, whatever the outcome.

The crypto community is also expecting a change in the market trend should Ripple win the case. Traders are even anticipating a potential alt season following this win which would propel other crypto assets as well.

Even those who do not stand with Ripple are hoping for a win – just to put the SEC back in its place.

Furthermore, a similar notion can be observed when it comes to investors, especially in the case of one of XRP’s biggest cohorts – the whales. XRP whales have only been acquiring the altcoin but have not really been active in moving it around much. Whale transactions have been average, with no significant movement noted in a while. Historically this indicates bullish expectations at the hands of investors.

XRP whale movement

XRP whale movement

However, traders must note that the market could flip if profit taking takes precedence. The 30-day Market Value to Realized Value (MVRV) ratio rising higher is evidence of the same. Standing above the neutral line, this zone has been synonymous with corrections in the past, and the XRP price could see some decline.

XRP MVRV ratio - 30-day

XRP MVRV ratio - 30-day

XRP price looks up to the sky

Akin to the MVRV ratio, the Relative Strength Index (RSI) is also suggesting corrections as the indicator has just breached into the overbought zone above 70.0. This shows that the market is overheated and needs to cool down, which could cause a price decline.

Should that be the case and XRP price end up falling through the critical support at $0.505, it could bounce back at $0.475 or dip to $0.432, marking a 20% crash. On the other hand, if the present bullishness persists, XRP could rise to test the critical resistance at $0.582.

XRP/USD 1-day chart

XRP/USD 1-day chart

Flipping the same into a support floor would not only mark new highs for 2023 but also set XRP price up for a rise beyond $0.600 toward $0.644, noting a potential 20% rally.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

More from Aaryamann Shrivastava
Share:

Editor's Picks

Solana Price Forecast: SOL slides below $92 as downside risk grows

Solana remains under pressure, trading below $92 on Wednesday and declining more than 3.5% so far this week. Muted demand for US-listed spot Solana Exchange Traded Funds, rising short positions and overheated market conditions continue to weigh on sentiment, limiting recovery attempts.

Top 3 Price Predictions: BTC tests critical support, ETH struggles below resistance, XRP extends losses

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday as bearish momentum continues to weigh on prices. BTC approaches key support around $76,466, and a decisive close below could open the door to deeper losses. Meanwhile, ETH struggles below key resistance while XRP faces rejection at the upper trendline of a falling channel pattern, all hinting at deeper losses.

Bitcoin struggles to capitalize on US Dollar weakness as Democrats advance in US midterms

Bitcoin is down nearly 2% trading below $76,000, and testing the 200-day Exponential Moving Average baseline near $76,501. Bitcoin’s pullback aligns with the weakness in the US Dollar, which typically provides tailwinds for risk-sensitive assets. The selling pressure aligns with the US midterm elections as early results point to Democrats leading gains in both houses.

Hyperliquid Price Forecast: HYPE eyes $78.4 support as CFTC approves US equity perpetuals
Hyperliquid (HYPE) trades at $81.73 as US regulators open another route for perpetual futures, allowing contracts tied to individual stocks to trade on qualifying domestic exchanges.
Bitcoin: Binance security breach and hawkish Fed push BTC lower
Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.