- XRP price sits at a 'make-or-break' point with a 25% upswing on the horizon.
- Despite the heavy manipulation that this cryptocurrency has gone through, it looks promising as it contends with a critical resistance barrier.
- On-chain data adds credence to the bullish outlook as whales are back in accumulation mode.
XRP price continues to suffer from the impact that the U.S. Securities and Exchange Commission's lawsuit had on Ripple. Telegram groups have coordinated “pumps and dumps” to help prices recover, but investors have taken advantage of every upswing to get rid of their tokens due to the legal uncertainty around it.
Now, this cryptocurrency could be about to make a comeback if it slices through a crucial resistance level.
XRP looks promising as whales go into a buying frenzy
After going through one of the most vicious pumps and dumps ever, XRP managed to bounce off the 200 twelve-hour EMA on its 12-hour chart on February 2. Since then, this cryptocurrency has risen by nearly 45% to recently test the 50% Fibonacci retracement level at $0.50.
If the bullish momentum seen recently remains intact, XRP price might be able to close above the $0.50 resistance level on the 12-hour chart. Breaking above this price hurdle could catapult Ripple’s native token by 25% towards $0.60.
XRP/USDT 12-hour chart
The bullish thesis holds when looking at Santiment’s holders distribution chart. Based on this on-chain metric, the number of addresses holding between 1 million to 10 million XRP has risen more than 1.70% since February 3.
Roughly 21 new whales have joined the network within such a short period. Consequently, increasing the upward pressure behind XRP price, which increases the odds for another leg up as long as the $0.50 resistance level breaks.
XRP Holders Distribution chart
However, a failure to slice through the $0.50 resistance level may invalidate the optimistic outlook. Rejection from this barrier may result in a downswing towards the 38.2% Fibonacci retracement level at $0.43 or the 50 twelve-hour EMA at $0.38.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.