Key Insights
- Ripple price has skyrocketed by 37% in a day, trading volume is up by 500%.
- As whale activity reportedly increases, spot flows are once again in the green.
As outflows subside, the Ripple (XRP) price may be poised for a possible recovery this week. Several indicators point to a possible turnabout, beginning with a change in attitude that suggests the likelihood of demand growth.
CFGI claims that on February 28, XRP sentiment fell as low as 24, solidly placing it in fear territory. As of this writing, it has recovered to 28, indicating that it is currently in neutral territory.
The change in sentiment might be an indication that demand is about to rebound. That will rely on its capacity to aggregate sufficient demand, though. The timing of this change points to a possible bullish week for the XRP price.
Evaluating the Level of XRP demand
Significant activity is required, particularly whale demand, to bolster the current bullish momentum and guarantee further upside. According to recent reports, there was a sizable money flow from whale addresses.
According to Whale Alert, during the past 24 hours, half a billion XRP coins were transferred from an unidentified wallet to Ripple. It was unclear whether this significant movement was due to demand or a sale.
Options volume fell 33.69% during the same period, while open interest in the derivatives segment increased by 4.26%.
Although it is not a definitive result, the difference between options volume and open interest may provide additional evidence that a pivot may be imminent.
In recent days, spot flows have also cooled off. For comparison, the final week of February saw a preponderance of spot outflows.
Nonetheless, they saw a sharp drop this past weekend and even produced positive spot flows totaling roughly $7.85 Million.
Is XRP Price Ready to Record New ATH Soon?
When writing, Ripple crypto was trading at $2.69 which has risen by 16.93% over the past 24 hours. The market capitalization was around $154.17 Billion and the 24-hour trading volume was $19.84 Billion.
At the beginning of March, the price managed to defend the major support level of $2. XRP price has gained strong buying pressure and has surged by 37% in a day.
It has reached the upper resistance level of $2.8. The price was wandering near this territory and a breakout can be seen.
Suppose the price triggers a breakout from this zone, a bullish momentum can be anticipated. The bullish trend might face difficulty in exceeding the $3.32 mark. Once the price surpasses this resistance level, buyers might dominate ahead.
After a successful breakout, the XRP coin price is expected to record a new all-time high $(ATH).
If the XRP price faces resistance from the $2.80 level, it could be a selling opportunity. Here, sellers could drag down the price to the support zone of $2.
XRP Price Analysis Based on Recent Surge
The recent surge in XRP’s price, marked by a 37% increase within a day, indicates a potential bullish trend, driven by increased whale activity and a shift in market sentiment.
With trading volumes rising significantly and spot flows turning positive, XRP may be poised for further recovery, especially as it hovers near crucial resistance levels.
If it successfully breaks through the $2.80 mark, there is potential for a new all-time high. However, if the price encounters resistance at this level, it could lead to selling pressure, bringing it back toward the $2 support zone.
Overall, the coming days will be critical in determining XRP’s trajectory as it seeks to sustain its bullish momentum.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
