- About 409 million XRP tokens moved from one wallet to another.
- If bulls defend the support at $0.48, with increased accumulating from the OBV, XRP may hit $0.52.
- The RSI needs to break above the 50.00 ceiling for the price to edge toward $0.55.
Lately, the price of Ripple (XRP) has been evading recovery as it continues to trade below $0.50. Even now that the value of Bitcoin (BTC) has been able to surpass $28,000. XRP still failed to follow, dropping a mild 1% in the last 24 hours.
However, the stalemate of the token has not stalled its movement from one address to another. One of XRP’s recent movements is the 409.77 million transfer from Bitvavo to an unknown wallet, as revealed by whale tracking platform Whale Alert.
For the unfamiliar, Bitvavo is a Netherland-based exchange and it’s one of the largest platforms for institutional crypto investors. In most cases, a movement from an exchange to a relatively unknown wallet is a sign that the token involved could be kept for a long time. Therefore, such action, like in XRP’s case, brews the sentiment that the cryptocurrency has a good long-term potential.
XRP Needs Support At $0.48
As of this writing, the XRP/USD one-day chart showed that the token faced increased selling pressure when the price was around $0.53 on October 4 till October 12 when it dropped to $0.48.
However, XRP showed signs of climbing back to $0.50. But the short-term bullish momentum was invalidated by a rejection at $0.49. Should selling pressure appear again at $0.49, then XRP could be on its way down to $0.46 thereabout.
For XRP to resist such a downfall, it would need significant support at $0.48, or at least, $0.47. If the support level isn’t broken, XRP may recover in the direction of $0.52 like it did in September.
There has also been an increase in the On Balance Volume (OBV). At 8.50 billion, the OBV indicates that accumulation is taking place. This is usually a sign of an upward breakout. Should the OBV continue its upward trend, the notion of XRP’s fall could be invalidated.
However, a breakout would also depend on the movement of the Relative Strength Index (RSI). At press time, the RSI was 43.04, meaning there was still some bearish momentum.
In order for XRP to break $0.50, the RSI needs to surpass the 50.00 ceiling. If the indicator breaks above the midpoint, then XRP’s value may rise and possibly hit $0.55.
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