Why did the price of XRP increase today?
XRP (XRP) outperformed the broader crypto market rally in the past 24 hours to hit a three-month high, benefiting from relatively light buying in the annual timeframe and renewed whale interest.
Crypto market recovery will boost XRP
On July 17, the price of XRP rose by 7% to $0.618, the highest in three months, despite the ongoing Mt. Gox payment led sales fears. The XRP/USD pair is up around 62.20% from the local low of $0.381 established on July 5th.
Interestingly, the crypto's market capitalization significantly underperformed XRP's recovery, growing by about 24.50% over the same period. In fact, XRP/USD is still down 1.71% year-to-date compared to the crypto market's 40% return.
This puts XRP holders in a good position to take advantage of such a rally, especially given the growing interest rate cut opportunities in September.
Internet trends indicate that retail interest in XRP is growing
According to Google Trends, XRP's gains today have been accompanied by a three-month high since July 17th, followed by an increase in internet searches for the keyword “XRP”.
Coupled with rising prices, this trend highlights growing retail demand and suggests that more internet users are paying attention to XRP's development and market performance.
These conditions are similar to the XRP price rallies in February-March 2024 and October-November 2023, with an increasing number of internet searchers searching for the keyword “XRP” as shown below.
Interestingly, this increase in XRP's Google searches has recently increased XRP holdings by retail investors, also known as “fish,” who hold between 100 and 1,000 tokens.
“With XRP making a resurgence this week, bullish narratives have exploded,” crypto analytics firm Santiment said in a July 16 post on X on social media, echoing several crypto analysts who have positive predictions about XRP.
“We may be on the verge of witnessing one of the most significant reversals in crypto history.
“In all my crypto trading, I've never seen a seven-year period of bull interest,” he added.
Related: ‘Bullish Narratives' Explode as XRP Rises 35% This Week
A small increase in XRP well holdings, as well
XRP's gains coincide with a modest increase in supply among today's wealthiest investor group.
In particular, at the beginning of this week, the supply of XRP increased by 100 million – 1 billion tokens (TL), which is associated with a decrease in the supply of 10 million – 100 million tokens (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 larger market players.
XRP Price Techniques: Falling Wedge Flash
Chart technicals suggest that XRP's gains are part of a breakout from an increasingly falling wedge pattern.
Falling patterns are considered bullish reversal patterns characterized by two descending, converging trends. In the textbook, they resolve when the price breaks above the upper trend line and the maximum distance between the upper and lower trend lines increases.
In the year Since July 17, XRP has entered a breakout level in the same pattern and is now looking at $0.663 as the next target, a resistance level from March.
Meanwhile, XRP's daily Relative Strength Index (RSI) rose to 77.46, the most overbought reading since November 2023. This indicates a possible major weakness in the coming days, which could see the price drop from February's key support level to $0.571. April time.
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.
