Ripple’s XRP price has seen some dramatic moves since August 1 when it first crossed the $0.3 resistance level. The top cryptocurrency then went ahead to record more gains, climaxing at $0.32 before its devastating fall on August 2.
XRP failed to find support at the $0.3 level and fell all the way down to find support at $0.25. This fall from grace seemed crucial to XRP’s present price movement as prices now race for higher heights.
XRP formed a Doji candle on August 3, at 01:00 hours UTC and this decided a major bullish move. The move upwards then saw prices surpassing the $0.3 level again and now aiming for the climax at $0.32.
Why XRP Surged?
Ripple was reported to have doubled up on its quarterly sales of XRP and this might have instigated few whales to increase their stakes in the digital coin.
This increase in stakes by XRP whales astronomically surged the price as XRP reclaimed the number three spot from Tether.
Accordingly, since July 18, the number of wallets holding one million to ten million XRP has increased progressively. Approximately 30 new whales have joined the platform, representing a 3.7% increase in a short period.
XRP/USD Technical Analysis
The trading pair is currently hovering around $0.30 while trying to break out of a triangle pattern. Although the upside is more likely to occur, it is also probable that a downtrend comes to play.
If a break out of the triangle occurs upwards, the next level of major resistance lies at $0.32. Beyond this level, XRP may have to take a free ride towards $0.4 in the short-term.
In the bearish possibility, however, prices may crash steeply towards $0.25 where major support exists. If the bears push stronger from here, the next support will be encountered at $0.2.
The resistance strength Index (RSI) bounced off the 50.0 level and moving sideways. A break above the midline will instigate a move towards the oversold condition at 70.0.
The upward movement was seen in XRP trends above the Bollinger band indicator. This signifies strong uptrend which may likely continue in the short-term.
The Bollinger top acted as major support during the fall of Aug 1 when XRP bounced up the level at $0.25. For prices to return to this level, sellers will have to be ready for price friction which may go either way.