Crypto: XRP Overheating – Correction Risks Remain
In the last few hours, XRP has stood out due to unusual activity from institutional investors and a sharp rise in bullish sentiment. According to recent data, the number of major transactions involving XRP has almost doubled in one day, indicating a significant renewed interest. This momentum could well signal major changes in the valuation of this crypto.
Sharp Rise in Whale Transactions and Bullish Sentiment
Large volume transactions, often referred to as ‘whales,’ have seen an unprecedented increase for Ripple’s crypto. According to data from Santiment, the number of these transactions of at least $100,000 surged by 92% within 24 hours, jumping from 332 to 637 transactions per day. This marked rise is indicative of growing investor optimism towards XRP, a sentiment confirmed by a 65% increase in positive perception during the same period.
Indeed, investors started accumulating XRP on July 2, at a time when the cryptocurrency’s price was around $0.478. This accumulation phase now seems to be ending, accompanied by a notable increase in activity on exchange platforms. The number of tokens entering exchanges climbed from 55.1 million to 92.9 million, while those exiting also increased from 25.3 million to 69.7 million. This difference of 23.2 million tokens indicates a prevalence of investors looking to make short-term profits compared to those continuing to accumulate the asset.
Key Resistances for XRP
Moreover, XRP’s relative strength index (RSI) is currently around 67, suggesting that the asset is slightly overbought. A price correction could therefore be possible. Currently, XRP is up 12.34% over the last 24 hours and is trading at $0.6127. With a market capitalization of over $34 billion and daily trading volume of $3.5 billion, XRP briefly hit a three-month high of $0.6176 earlier today.
In terms of indicators, XRP’s hourly MACD is now in bullish territory and confirms the positive momentum. These technical indicators, combined with the recent increase in whale activity, show a bubbling market dynamic fueled by price rise expectations among investors. The question remains whether this trend will hold up against a possible market correction.
In terms of indicators, XRP’s hourly MACD is now in bullish territory and confirms the positive momentum. These technical indicators, combined with the recent increase in whale activity, suggest substantial upside potential provided key resistance levels are surpassed.
Nevertheless, the risks of correction remain. The market’s evolution in the coming days will be important in determining whether XRP can maintain this upward trajectory or not.
