- Ripple's XRP has seen increased buying activity among whales in the past two weeks.
- Bitwise announced a rebranding of its European XRP ETP amid speculations of a 2025 XRP ETF approval in the US.
- XRP could extend its rally to $2.58 if it overcomes the upper boundary of an ascending channel.
Ripple's XRP rallied 6% on Wednesday following increased buying pressure among whales in the past two weeks. The remittance-based token could stage a move to $2.58 amid increased institutional interest in the launch of an XRP exchange-traded fund (ETF) in the US.
XRP whales step up buying pressure, Bitwise rebrands XRP ETP in Europe
XRP's supply across its largest exchanges, Binance and Upbit, has been trending downward in the past two weeks. According to CryptoQuant's data, XRP's exchange reserve has plunged by over 500 million XRP since November 13. A decline in an asset's exchange reserve indicates that buying pressure is rising.
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XRP Exchange Reserve (Binance) | CryptoQuant
Santiment's data shows that most of this buying activity came from whales who have increased their holdings by over 700 million XRP in the same period. The increased buying activity among whales suggests growing confidence in XRP's potential to stretch its rally.
 [20.50.46, 27 Nov, 2024]-638683480957046975.png)
XRP Supply Distribution | Santiment
The remittance-based token began its uptrend after Donald Trump emerged as the winner of the US presidential election, stretching its monthly gains above 180% since then.
It's important to note, however, that investors have realized over $1.5 billion in profits along the way, as noted in a report earlier. If the profit-taking heightens as XRP rallies, it could cause potential downward pressure on its price.
Meanwhile, in a press release on Wednesday, asset manager Bitwise announced the rebranding of its Europe-based XRP ETP. Formerly called ETC Group Physical XRP, the Bitwise Physical XRP ETP is 100% physically backed and will continue trading on the German Deutsche Börse exchange.
The asset manager also confirmed that Ripple will be an investor in the newly branded XRP fund.
"Global demand for exposure to the crypto asset class has exploded in 2024, fueled by a growing interest in crypto-backed investment offerings," said Ripple Labs CEO Brad Garlinghouse in the press release. "With the U.S. regulatory environment for crypto finally becoming more clear, this trend is poised to accelerate, further driving demand for crypto ETPs, such as the Bitwise Physical XRP ETP."
XRP could rally to $2.58 if it breaks above key channel
Ripple's XRP is up 6% following $10.91 million in XRP futures liquidations in the past 24 hours, per Coinglass data. Liquidated long and short positions accounted for $3.87 million and $7.04 million, respectively.
XRP has been trading within a key channel in the past week after a recent sideways movement near the $1.35 level.
XRP/USDT 4-hour chart
A high volume move above the upper trendline resistance of this channel will see XRP surging above its three-year resistance of $1.96 to a high of $2.58. However, a move below the lower trendline of this channel could spark a 30% decline to $0.93.
The Relative Strength Index (RSI) is above its neutral level, indicating bullish momentum is prevalent in the market.
A daily candlestick close below $0.93 will invalidate the thesis.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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