XRP price is demonstrating positive bullish momentum following the breakout of its bullish pattern, coupled with increased whale participation and an increasing number of wallets. Technical indicators are favorable, and any expansion of the XRPL ecosystem could help the coin’s recovery and future growth.
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XRP Completes Correction as Analyst Identifies New Cycle
Ed_NL has discovered a potential move to the next phase of the market cycle for XRP. According to him, XRP finished five bullish sub-legs before it entered the ABC correction that took it towards a vital Fibonacci retracement zone.
XRP then bounced off from the 0.786 Fibonacci zone and moved higher than its old bearish pattern.
Source: Ed_NL’s X Post
This pattern indicates that Ed_NL sees an opportunity for XRP to make another rising wave, which will most likely be the third one in a more extended trend.
The analyst expects the asset to have a minimum target at around $4.40, with normal trading conditions, but he also notes that if the price starts accelerating, then the pace will become much faster.
XRP Price Holds Above Key Moving Averages
Data from TradingView is another source that offers technical background to the recent performance of XRP. From the XRP four-hour chart, it can be seen that the asset rose from $1.25 to nearly $1.66 before reversing down to $1.5285.
Even though there is some retracement, the XRP price is still trading above some important moving averages.
Source: TradingView
The trend on the 20, 50, 100, and 200 EMAs is still positive because the shorter-term EMAs are trading above the longer-term ones.
But the momentum has lost some strength after the RSI climbed above 70 at the level of $1.66 and became overbought. The oscillator dropped to 55.95 levels, thus reducing the excess momentum.
Also Read: XRP Price Targets $2 as Evernorth Secures $30 Million XRP Funding
XRP Trading Volume Climbs Amid Increasing Interest
Data from market derivatives further illustrates the change in XRP trading volumes. As per CoinGlass, XRP trading volume rose by 14.31% to reach $9.77 billion, while open interest fell by 2.61% to $3.77 billion.
This suggests that while the volume of leveraged bets outstanding is falling, participation in the markets still remains relatively high. High volumes coupled with low open interest can be the result of position liquidation, reducing leverage, or a focus away from newly created derivative positions.
Source: Coinglass
This difference is critical since higher volume will not necessarily indicate a continuation of the bullish trend but indicates that XRP is actively traded at a time when traders are making changes to their positions.
Whale Activity and Network Growth Strengthens
Some of the on-chain trends that emerged alongside XRP’s recent price action have been noted by Santiment Intelligence. The current market value of XRP has risen above $1.60 and reached this mark for the first time since February 4.
This rise is observed in connection with 1,917 whale transactions exceeding $100,000 and being the most active in about a month.
Source: Santiment Intelligence’s X Post
Participation in the network also saw an uptick, with 3,647 more XRP wallets being added. Elevated activity by whales could either mean accumulation or distribution, but it still shows that there is heightened activity by the whales.
In conjunction with the creation of new wallets, it offers another on-chain perspective on XRP’s rise in value.
XRPL Ecosystem Expansion Adds Fundamental Context
Apart from technical data and markets, the whole XRP ecosystem continues to evolve further. According to the data from Santiment, XRPL’s balance of tokenized assets and RLUSD stands at about $4.26 billion, while Ripple notes approximately $2.4 billion in RLUSD circulating supply.
It all clearly indicates that the XRP Ledger community is progressing towards stablecoins, tokenization, and settlements. Institutional participation is also becoming increasingly significant; for instance, Bitwise filed the registration of the new XRP ETF with the SEC on September 18th.
What Happens Next for the XRP price?
As far as XRP is concerned, there are a number of factors for traders to watch out for because of the fact that a recovery in the technical structure of XRP, high levels of trading volume, high activity from whales, creation of new wallets, and growth of infrastructure within the ecosystem are all evident at this stage.
Also Read: XRP Price Eyes a Strong Breakout to $18 as Whale Accumulation Surges
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
