XRP’s market sentiment is on an upswing, signaling a potential 12% price increase if the current technical setup holds. The cryptocurrency, widely recognized for its utility within Ripple’s cross-border payment system, has seen bullish indicators that suggest its price could climb to $0.65, a level not seen since early August. This momentum is being driven by several key factors, including increasing whale activity, rising trading volumes, and a strong market outlook.
Whale Activity Signals Confidence
A notable factor behind XRP’s positive momentum is the recent whale outflow from the South Korean Upbit exchange. High-volume traders have begun moving large amounts of XRP off exchanges, a sign that they are holding onto their assets, expecting the price to appreciate. On Sunday, XRP’s trading volume soared to over $106.6 million, nearly doubling Bitcoin’s activity on the platform—a remarkable signal of growing investor confidence in the token.
This significant trading volume is reflective of a broader shift in market sentiment, particularly in Asia, where Ripple’s partnerships are strong. The surge in buying activity highlights that traders in the region are increasingly optimistic about XRP’s long-term prospects.
Positive Funding Rates Reflect Market Optimism
In tandem with rising volumes, XRP’s funding rate across exchanges has remained positive, indicating bullish sentiment among traders. A positive funding rate, currently at 0.006%, reflects heightened demand for long positions. Traders are willing to pay a premium to maintain their positions, anticipating that XRP’s price will continue to rise. Since September 7, XRP’s funding rate has remained in the green, reinforcing the idea that market sentiment is bullish.
According to Santiment, this consistent positive funding rate suggests that XRP has strong momentum, with traders showing confidence in maintaining alignment between contract and spot prices.
Technical Indicators Show Bullish Momentum
Supporting the bullish outlook for XRP is the Chaikin Money Flow (CMF), which currently stands at 0.20. A CMF value above zero indicates strong accumulation, suggesting that more investors are buying and holding XRP rather than selling it off. This accumulation is a bullish signal for the token, as it points to growing confidence among investors.
With both whale activity and positive technical indicators in alignment, XRP seems well-positioned to break through key resistance levels. Should the buying pressure continue, analysts predict that XRP could see a 12% price increase, pushing it to $0.65. A breakout above $0.65 could trigger further gains, potentially driving the price to $0.74, marking a six-month high.
Also Read: XRP Gains Momentum – 700K+ In Grayscale Trust And A High-Stakes October Ahead
XRP is on the cusp of a significant rally, with technical indicators suggesting a potential breakout. If the current low selling activity persists and buying pressure continues to mount, the cryptocurrency could climb 12%, reaching $0.65. Breaking past this level could further fuel optimism, potentially pushing XRP towards $0.74, a six-month high.
For now, XRP’s bullish technical setup, combined with growing whale activity and rising market sentiment, points to a promising future. If these trends hold, XRP investors could be looking at substantial gains in the near term.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
