The value of XRP has increased by approximately 11.50% in the past 24 hours, reaching $0.68. At its peak during the day, the cryptocurrency traded as high as $0.74, its highest level since November 2023. Several factors have contributed to this rise in XRP’s price.
One contributing factor is the withdrawal of a significant amount of XRP from crypto exchanges. On March 8, an anonymous entity withdrew 300 million XRP, worth over $187.13 million, from Binance. Following this, there were several other outbound transactions totaling $18-19 million, indicating that wealthy XRP investors prefer to hold their tokens rather than trade them for other assets on exchanges. Data from Messari also shows an increase in the number of addresses with a balance of over 1 million XRP, suggesting that large crypto investors are driving the current price gains.
XRP’s price has rebounded against Bitcoin. The XRP/BTC pair has surged by over 12% after reaching its lowest level since March 2021. This indicates that some risk-on traders are moving their capital from Bitcoin to altcoins, seeking greater profit potential in the short term. Traders also rotate their capital to lower their risk exposure in overbought assets. Compared to Bitcoin, XRP’s daily relative strength index (RSI) remains in the neutral range, showing a balanced sentiment among investors. This suggests that XRP may have more room to rise compared to Bitcoin.
From a technical analysis perspective, XRP’s price gains have emerged from a support confluence area. This confluence includes XRP’s ascending trendline, the 50-day exponential moving average (50-day EMA) at $0.58, and the 0.382 Fibonacci retracement line near $0.59. These support levels resemble a pattern observed in November 2023, which preceded a 21.25% price rally. To sustain its uptrend, XRP will need to surpass the multi-year descending trendline resistance and target $1. A routine pullback from the resistance could result in a 20% drop towards the ascending trendline support around $0.50. In this bearish scenario, XRP’s downside target would be near its 50-week and 20-week EMAs.
This surge in XRP’s price is a clear indication of its value. Great news!