As of the last 48 hours, Sentiment data shows that XRP whales have bought 360 million tokens. This large-scale accumulation indicates that institutional investors and high-net-worth individuals have confidence in the token.
Buying whales has always been a buy signal. This shows that there could be an increase in the price of XRP.
This whale activity improves the liquidity of XRP by increasing market stability and encouraging greater participation.
As large investors buy more XRP, other traders, including retailers, may see this as a buying opportunity and continue to buy.
XRP price climbs to $2.40 amid January performance and regulatory changes
The price of XRP rose to $2.41, the highest since December 18. The currency is up 26% from the previous week’s low.
This is in line with January’s performance where investors who were on vacation are known to rebalance their portfolios and in the process buy more high-growth assets such as cryptocurrencies.
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Also, there are reasons for optimism due to positive changes in the legal framework. The upcoming inauguration of Donald Trump and the expected departure of SEC Chairman Gary Gensler have given new life to cryptocurrency.
The expected nomination of Paul Atkins as the new chairman of the SEC also fueled positive sentiment as Atkins gave his nod to the crypto sector.
Ripple ETF optimism adds fuel to XRP’s growth
Increasing chances of XRP ETF approval also add more fuel to fireXRP’s rise. According to Polymarkets, the probability of XRP ETF approval is 70%, indicating a gradual increase in investor sentiment.
If approved, the XRP ETF could also attract massive institutional capital. That was the case with Bitcoin and Ethereum ETFs, which added $35 billion and $2.6 billion, respectively.
Moreover, following the XRP ETF speculation, WisdomTree joined the growing list of asset managers seeking SEC approval for a spot XRP ETF.
The move underscores the growing institutional interest in XRP as a legitimate asset class. The recent launch of the WisdomTree Physical XRP ETP further underscores the company’s commitment to providing secure investment avenues for XRP.
With the potential for regulatory changes under Donald Trump’s administration, the price of XRP could see increased bullish sentiment.
One of the key factors in price growth is the development of the Ripple ecosystem. The Ripple network stablecoin (RLUSD) has been added to several exchanges such as Bullish and Uphold.
These new developments will solidify Ripple’s position in decentralized finance (DeFi) and increase the utility of XRP.
Technical analysis points to a $3 target for XRP
According to technical analysis, the price of XRP may continue to rise. This asset has developed a bullish flag which is defined as an upward movement in price with consolidation afterwards.
This formation often leads to a breakout, and analysts expect the price to reach $3 soon. The same positive outlook is supported by market sentiment as the next resistance levels are identified at $2.90 and $3.
A breach of these levels can lead to further growth and push the price of XRP to $3.7. According to the Moving Average Convergence Divergence (MACD), the bullish momentum for XRP remains intact.
The MACD line (blue) crossing above the signal line (orange) indicates a move towards positive momentum, with the histogram showing green bars, indicating increasing strength of buying pressure.
In addition, the MACD hovering in positive territory suggests that the market trend is in favor of the bulls, reinforcing the possibility of further upside.
As for Bull-Bear Power (BBP), the indicator is also in line with bullish sentiment as it remains in positive territory, reflecting that buyers are outweighing sellers.
A high BBP value, such as the current reading, suggests strong market demand. This adds weight to the ongoing bullish momentum and strengthens the bullish case for the XRP price in the near term.
