Will XRP Price Bounce Back Stronger After Whale Activity?
Highlights
- XRP price breached a key yearly level of $0.561, amid broader crypto market correction.
- This breakdown, while bearish, could reverse soon, leading to a Ripple rally.
- XRP whales realized 337 million profit amid Friday’s 4.28% crash.
XRP price has shown incredible resilience in the past few days, but the recent Bitcoin crash has knocked Ripple down. As a result, $3.58 million Ripple longs faced liquidations on September 6.
Profit-taking Could Dampen XRP Price Recovery
According to Santiment’s Net Realized Profit/Loss indicator, investors sold 353 million XRP to book profits on September 1. Despite this sell pressure and broader crypto market crash, Ripple has shed only 4%, which shows the resilience and buying pressure.
However, technical analysis for XRP price shows a high chance of recovery in the coming days.
XRP Price Analysis: Ripple Bulls Ready For a Bounce
Although XRP price shed 4.28% on September 6, the remittance token is at a critical reversal level. Based on the past two-month data there are interested buyers every time Ripple has dipped. During these dips, the Relative Strength Index (RSI) has been trending higher, producing higher lows, which adds credence to the bullish outlook.Furthermore, the yearly Volume Weighted Average Price’s (VWAP) lower limit at $0.503 has also played a pivotal role in supporting the price.
If history repeats, investors can expect XRP price to see a strong buying pressure followed by a recovery rally.
Here are the key levels that investors must pay attention to if Ripple price climbs higher:
- Yearly VWAP at $0.561, coinciding with a daily resistance level.
- Yearly VWAP’s upper limit at $0.619, also coinciding with another daily resistance zone, extending from $0.619 to $0.635.
These are the short-term targets and constitute 6% and 20% gains respectively from where XRP price trades today at $0.529. In a highly bullish case, where XRP overcomes the $0.635 hurdle and flips it into a support floor, the $0.716 hurdle is the next target.
On the other hand, if XRP price slips below the yearly VWAP’s lower limit at $0.503, it would invalidate the aforementioned bullish thesis. Such a development cold see the remittance token crash 6% and revisit the $0.469.
Frequently Asked Questions
Why did XRP price face liquidations on September 6?
Is XRP price expected to recover?
What are the potential risks for XRP price?
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