Why did the price of XRP increase today?
XRP (XRP) price is up 3.5% in the past 24 hours, continuing its rally fueled by the broader crypto market recovery. This bullish activity has increased significantly with reports of institutions piling up during the recent Gox-led market deluge.
XRP currencies witness inflows during price collapses.
XRP's gains are part of a broader recovery that began today, July 8, when asset management platform CoinShares crypto fund shared an estimated $441 million in revenue during the same week as the crypto market fell 11.28%.
An investment fund focused on XRP.
CoinShares researcher James Butterfield said:
“Digital asset investment products inflows totaled US$441m, with recent price weakness on Mt Gox and German government selling pressure seen as a buying opportunity.”
The move into XRP and the broader crypto market coinciding with Wall Street's bet on September rising, following better-than-expected jobs data released on July 5. Interestingly, the XRP spot market's lowest return since July 5 is around 16. %
US Federal Reserve Chairman Jerome Powell reiterated the same ambivalent view in his testimony to Congress on July 10.
Small increase in XRP well holdings
XRP's gains equate to a small increase in supply among today's wealthiest investors.
In particular, in the last 24 hours, the supply of XRP held by entities with a balance of 100 million – 1 billion tokens (tail) has increased, which is accompanied by a decrease in the supply of the 10 million – 100 million cohort (black).
Meanwhile, the supply held by addresses with more than 1 billion tokens (blue) was flat. This indicates that entities in the lower group are mobilizing XRP to move to the upper group, indicating growing confidence and investment among the major market players.
XRP price rises after being “oversold”.
From a technical perspective, XRP's gain today is part of an oversold swing, a common market reaction when the asset's Relative Strength Index (RSI) falls below 30.
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Additionally, similar to the April trend, the XRP price rallied after testing the lower downtrend line as support. If the breakout repeats, the next July target looks to be on the wedge line near $0.45, which is 5% from the current price level.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
