XRP, the popular cryptocurrency, has made big strides in recent trading hours. Investors and traders have seen notable gains, with the hourly chart indicating an uptrend despite the sharp rise. With the price of XRP hovering around $0.696533, CoinGecko recorded a staggering 8.9% increase over the past 24 hours, representing a seven-day rise of 24.4%.

The bulls are flexing their muscles on the daily time frame, confirming the resilience of the cryptocurrency and the potential for further upward movement. Analysis of XRP price action reveals several compelling factors that point to a bright future outlook for this digital asset.

Sustained momentum above major moving averages

Current XRP price $0.696533 is not just a passing rally. It is trading significantly above the 50-day and 200-day exponential moving averages (EMAs), which is a strong indicator of bullish sentiment. When a cryptocurrency holds a position above the major EMAs, it usually indicates a solid foundation for a long-term uptrend.

The possibility of a bullish crossover between the 50-day and 200-day moving averages adds weight to the argument for sustainable growth. This technical formation suggests that XRP may continue to rise, which could attract more investors looking to profit from positive price action.

XRP market cap currently at $37.546 billion on the daily chart: TradingView.com

The RSI confirms strong buyer sentiment

In addition to the moving averages, the Relative Strength Index (RSI) for XRP is comfortably above the 50 mark. The RSI is a momentum oscillator that measures the speed and variability of price movements. When it crosses the threshold of 50, it indicates a shift towards bullish sentiment.

With the RSI clearly in bullish territory, it reinforces the idea that buyers are firmly in control of the XRP price path. This increasing level of buyer confidence is a critical driver of the continued rise in cryptocurrency prices.

Critical resistance point

While XRP’s recent performance is undeniably impressive, traders and investors should exercise caution and monitor the daily bar close closely, especially with regard to price. Resistance level is at $0.6541. This price point is a critical juncture that can influence the direction of XRP price movement.

A breakout of this resistance could push XRP to higher levels, possibly creating new support levels at higher values. Conversely, failure to overcome this obstacle may lead to a temporary setback. Therefore, staying vigilant and responsive to market dynamics is crucial for those considering investing in XRP.

Source: Santiment

Increase whale appetite for XRP

Meanwhile, there has recently been a notable increase in the acquisition of XRP by prominent cryptocurrency investors, referred to as “crypto whales.”

This increase in buying activity has contributed to a very dynamic start to November this year. The XRP price rise has been significantly influenced by bullish trading activity observed within a group of strategic cryptocurrency whales, as shown in recent on-chain data.

Whales, which hold between 100,000 and 1 billion XRP, accumulated an additional 1.26 billion XRP between October 24 and November 6, setting a new record for their total holdings in 2023. The chart above shows how the price of XRP began to rise positively around October. This happened on February 24, which is when these wealthy investors started making large purchases of the cryptocurrency.

At $0.68 per XRP, the 1.26 billion XRP obtained is worth $850 million. XRP price rose above the important resistance area at $0.65 after this major investment in two weeks.

(The content of this website should not be construed as investment advice. Investing involves risk. When you invest, your capital is at risk.)

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