On May 7, XRP price registered a notable 2% increase, driven by renewed optimism surrounding US-China trade negotiations. As it stands, XRP is trading above the critical $2.00 threshold, with analysts underscoring specific support levels essential for a sustainable bullish trajectory.
Key Takeaways:
- XRP price experienced a 2% increase on May 7, reflecting positive market sentiment.
- Whale accumulation suggests strong underlying demand.
- Maintaining support above $1.83–$2.00 is crucial for further price appreciation.
Whale Accumulation: A Positive Indicator for XRP
Several metrics indicate that XRP’s recent price ascension could be more than just a fleeting response to favorable macroeconomic developments. Notably, Santiment’s Supply Distribution metric shows an increase in XRP supply held by large entities (those with a 1 million – 10 million token balance), rising to 9.44% of the total supply—an increase of 1.2% since the beginning of the year. This accumulation implies that rather than selling during market downturns, these significant holders are strategically positioning themselves for potential gains.
With whales accumulating XRP during price dips, there is less downward pressure on the asset. This behavior can attract smaller retail investors, creating a more solid price floor.
Interestingly, XRP’s open interest (OI) has seen a subtle increase of 0.32%, reaching $3.65 billion in the last day, which indicates a slight uptick in trader confidence. Nevertheless, trading volume has decreased by 17% to $3.9 billion. This discrepancy raises concerns about market conviction as traders await a clearer price direction.
Can XRP Reach $4? Analysts Weigh In
Market analysts believe that XRP could revisit its seven-year highs above $3.40, with the prerequisite of holding key support levels. Recently, the price rebounded off the 200-day Simple Moving Average (SMA) at $2.08, demonstrating resilience as it climbed to an intraday high of $2.17, coinciding with the 50-day SMA.
As there are calls for defending this support level, analysts emphasize the importance of re-establishing trends. The critical price point to watch remains $2.12 for signs of potential trend reversal.
Furthermore, fellow analysts opine that XRP must not close below $1.83 to retain its bullish momentum. Some experts assert that as long as XRP remains above a previous low of $1.60 reached in early April, it could still be considered in bullish territory, paving the way for new all-time highs.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk; therefore, readers are encouraged to conduct their own research before making decisions.
