At the time of writing, a Ripple Whale was observed moving 83.8 million XRP, valued at nearly $54 million, in two large transactions. These movements occurred in two large transactions: 60 million and 23.8 million XRP, respectively. The movement which could have been done by an institutional player might have triggered a rally in XRP.
XRP is used in the Ripple Payment platform where fiat currency is converted into XRP for cross-border payments. The payment system is based on the RippleNet systems and is known to carry out cross-border transactions for banks in the US, UK, Brazil, China, UAE, India, Australia, Sweden, Japan, Thailand and Singapore.
The transaction was reported by Whale Alert, a bot that tracks large crypto transactions by investors known as 'whales' due to the size of their portfolios.
The first transaction also raises speculation that the whale might be a bank or institution using the crypto for cross-border settlements.
The first transaction also raises speculation that the whale might be a bank or an institution that might use the crypto for a cross-border settlement. Banks in at least 12 countries are known to use the cross-border payment facility. They are the US, UK, Brazil, China, UAE, India, Australia, Sweden, Japan, Thailand and Singapore.
The second transaction involved the transfer of 23.8 million XRP from Ripple to an address on the Bitstamp exchange. Though exchange transactions seem to indicate selling, sometimes, it might be for distribution purposes as several exchanges charge zero fees as long as the transfers happen within the exchange.
The demand for XRP might trigger a rally, as institutional players seem keen on using cryptocurrency and blockchain technology for inter-bank and international transfers. Even if every country develops their own CBDC, they would need a blockchain for cross-border settlements.
Also, on technical charts, it seems that XRP is at the cusp of a breakout which might take the prices 21% above the levels of $0.62.
Therefore both fundamental and technical reasons indicate an upcoming rally.
We have analyzed XRP prices on daily charts and have found that there is a possibility of XRP crossing $0.75 if there is a sustained move above $0.65. The targets might introduce a 21% gain for XRP holders.
At the time of writing this article, XRP was very close to a strong support level of $0.60 which is also the stop-loss for any buy decisions.
There appears to be a small hurdle at $0.65 which XRP never crossed after 16 November 2023. If this level is crossed and the price sustains even for a single day above these levels, XRP might touch $0.75 within a few days.
The reason the movement above $0.65 seems possible is that the RSI changed its direction on 5 December 2023; before that, it was on a decline. The RSI has moved above 52 and appears progressing towards the level of 60. A higher RSI level signifies a higher strength in the price movement in the upper direction.
Also, MACD, another popular indicator used for trading, indicated a positive crossover. A positive crossover shows the increased intensity of buying as short-term price momentum overtakes the longer-term price momentum.
If the crossover materializes XRP might reach a price near $0.75 crossing which $1 price for the cryptocurrency might arrive soon.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.