By Solomon Odunayo
XRP, the fourth largest digital currency by market capitalization, started the week with over 2% price appreciation. And it has been noted that the increase in buying pressure could push the Ripple’s digital currency out of the 2-month-long price correction.
XRP Is Poised To Print a Bullish Price Breakout
Over the past two months, XRP, the cryptocurrency designed for cross-border payments, has been enduring a huge price correction, relative to other cryptocurrencies in the market.
XRP saw its price dip by over 30% after dropping from a high of $0.33 in early August 2020, to as low as $0.22. At the time of filing this report, XRP is trading at $0.245801, with a 1.83% price upsurge in the last 24 hours.
Read Also: Credible Crypto: XRP Is Poised To Outpace Ethereum (ETH) In the Next Bull Market
Over the past two months, a descending parallel channel has been developing on XRP’s 1-day chart. A descending line rejected upward price action while a parallel trendline on the lower end of the channel kept falling prices at bay.
The most recent rejection from the channel’s upper boundary is a notable sign that the digital currency is liable to experience a continued price retracement. However, the recent bullish price action printed by XRP has made traders and investors remain positive.
A further increase in demand could enhance XRP’s price surging strength to surpass the overhead resistance and turn the 50-day and 100-day moving averages into support.
In this regard, XRP might experience over 20% price increase towards the next most significant resistance level, $0.3.
XRP Whales Keep Increasing
The recent XRP holder distribution index shared by the behavioral analytics firm Santiment has added credence to the bullish outlook of the cryptocurrency.
Read Also: Ripple Buying Back XRP: What This Could Mean For XRP Market
The firm recorded a huge increase in the number of addresses holding between 1 million and 10 million XRP. About 14 new whales have joined the XRP success train since 13th October 2020, as prices remained without significant improvement.
This type of bullish divergence between prices and the number of huge bag holders on the XRP network is a positive sign for investors and traders. If the buying pressure increases, there might soon be a price breakout.
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