Ripple Price Analysis: XRP Has A Bullish Session After Four Straight Negative Days
Daily Ripple XRP Price Forecast
- The Ripple price volatility is increasing.
- In the 4-hour chart, XRP has crashed below key levels.
Before today, the Ripple price had four straight bearish sessions, wherein XRP crashed from $1.62 to $1.52. Prior to this drop, XRP bounced up from 20-day SMA as it went from $1.38 to $1.62. Let’s take a closer look with technical analysis.
Ripple Price Ekes Out Bullish Session
The buyers took charge of the Ripple price and pushed it up to $1.56, reaching an intraday high of $1.65, which was promptly rejected by the resistance barrier. As things stand, the MACD shows increasing bearish market momentum, and the Bollinger band is expanding. This tells us that a further drop could be in the cards.
Image: XRP/USD daily
In the 4-hour Ripple price chart, XRP has broken below the 20-bar and 50-bar SMAs. The relative strength index (RSI) shows that XRP may drop some more before it becomes underpriced. The MACD indicates bearish market momentum is a further drop is int he cards.
Image: XRP/USD 4-hour
Whales Are Quietly Accumulating Ripple
Ripple Labs recently disclosed that it increased the sales of XRP during the first quarter of 2021. In a blog post, Ripple said that its sales of XRP in the first quarter nearly doubled relative to the last quarter of 2020 due to the surging customer demand for its cross-border transfer solution On-Demand Liquidity (ODL).
Last quarter, total XRP sales by Ripple, net of purchases, were $150.34M vs. $76.27M the previous quarter. The increase in XRP sales can be attributed to deeper engagement from key ODL customers. For well over a year, Ripple has not sold programmatically. Ripple continued to engage in sales to support ODL and key infrastructure partners as part of providing increased XRP liquidity to improve the ODL experience of certain customers, eliminating the need for pre-funding and enabling instant global payments.
Ripple also revealed that whales quietly accumulated XRP during the first quarter of the year. Wallets with balances of at least 10 million XRP increased from 308 to 319, the firm said. Similarly, the number of wallets holding between 1 million and 10 million XRP surged from 1,125 to 1,196.
The fintech company added that XRP’s on-chain activities are also on the rise.
“Last quarter, the number of active XRPL wallets increased as on-ledger activity grew. In Q1, total on-ledger payment volume was $62.3 billion, representing a 23% increase quarter-on-quarter, while the number of total on-ledger wallet addresses increased 15% from 2.35 million to 2.70 million.”
Despite the trading suspension of XRP on some crypto exchanges during Q4 of last year following the US Securities and Exchange Commission (SEC) lawsuit, XRP saw new XRP pairs being added to exchanges around the world in the first quarter.
Ripple Price Is Expected To Reach These Levels
If the bears retake control, XRP will likely drop to the 20-day SMA ($1.40), before the buyers take over.