XRP price surges 11.50% in 24 hours, hitting $0.68, driven by whale activity, capital rotation, and technical rebound. Analysis and implications.
The surge in XRP (XRP) price today is remarkable, with an increase of around 11.50% over the past 24 hours, reaching $0.68. At its peak during the day, the cryptocurrency soared to $0.74, marking its highest point since November 2023.
We'll delve into the fundamental drivers fueling the current XRP price surge.
Significant XRP Whale Activity and Crypto Exchange Withdrawals
The surge in XRP's price today coincides with substantial capital movements from cryptocurrency exchanges.
Of particular note, on March 8, an unidentified entity withdrew 300 million XRP valued at over $187.13 million from Binance, as reported by Whale Alert data.
Following this, several outbound transactions worth $18-19 million ensued, indicating that major XRP investors prefer holding onto their tokens rather than exchanging them for other assets on platforms.
This trend is further evidenced by data from Messari, revealing an increase in the number of addresses holding over 1 million XRP during this ongoing price surge.
Such data suggests that large-scale crypto investors are driving the current surge in XRP prices, typically signaling further upward potential.
Capital Redistribution from Bitcoin Markets
In addition, the rise in XRP's price today coincides with a notable recovery against Bitcoin (BTC).
Related: XRP's Lackluster Performance Against Bitcoin in 2024 — Can it Stage a Comeback?
Notably, the XRP/BTC pair has surged by over 12% following a drop to 0.00000859 BTC, its lowest level since March 2021. This rebound indicates a shift of risk-on traders from Bitcoin to altcoins, seeking greater short-term profit potential.
Traders are also reallocating capital to mitigate risk exposure in overbought assets. Despite its 72.5% increase so far in 2024, Bitcoin remains "overbought" on daily timeframe charts.
In contrast, XRP's daily relative strength index (RSI) remains within the neutral range of 30-70, reflecting balanced sentiment among investors. This suggests that XRP may have further upside potential against the leading BTC rally.
Technical Rebound in XRP Price
From a technical analysis standpoint, XRP's price surge has originated from a confluence of support levels.
This confluence includes XRP's upward trendline, its 50-day exponential moving average (50-day EMA - the blue line) at $0.58, and the 0.382 Fibonacci retracement line near $0.59. These support levels resemble a pattern observed in November 2023 preceding a 21.25% price surge.
Therefore, XRP's price movement will likely target a close above the multi-year descending trendline resistance to sustain its upward trajectory towards the widely anticipated target of $1. Conversely, a retracement from this resistance could lead to a 20% decline towards the support of its upward trendline around $0.50.
In a bearish scenario, the downside target aligns with XRP's 50-week (the red line) and 20-week (the blue line) EMAs.
It's important to note that this article does not provide investment advice or recommendations. All investment and trading decisions carry risks, and readers are encouraged to conduct their own research before making any decisions.