As the cryptocurrency market goes through a period of retrenchment, XRP appears to be weathering the storm better than most of its peers. Despite concerns that a fall below the critical $2 support level could spark a freefall in its price, XRP’s value has only slightly fluctuated over the past 24 hours, recording a mere 0.03% loss. The bullish sentiment seems to be doing a commendable job in sustaining XRP above $2.30.
Currently, XRP is trading at $2.33, boasting a 10.22% increase since the beginning of the year. When compared to Bitcoin’s 12.27% drop and the S&P 500 index’s 3.73% devaluation in the same period, XRP’s performance seems rather hopeful.
An Examination of XRP’s Resilience
While the initial assessment of XRP’s performance appears positive, a closer look reveals a 15.45% drop compared to its value 30 days ago. Moreover, the current price is 20.74% lower than XRP’s $2.94 peak on March 3.
Despite these declines, XRP exhibits signs of resilience and potential growth. As reported by Finances Zippy, the number of XRP accounts has surpassed 7 million, indicating a consistent increase in acceptance. Institutional interest in XRP exchange-traded funds (ETFs) is also on the rise, as evidenced by recent filings by Franklin Templeton with the Securities and Exchange Commission (SEC).
In further evidence of XRP’s appeal, renowned technical analyst Ali Martinez highlighted the increasing purchase of XRP by whales, i.e., accounts holding over 100,000,000 XRP.
Is It Time To Follow The Whales?
Martinez’s analysis revealed that between March 13 and March 15, XRP whales purchased over 150 million tokens. Furthermore, he posits that if the resistance level at $2.5 is broken, XRP could potentially surge to $15.
This development is especially significant in light of Ripple’s escrow schedule. Despite the release of 200 million XRP potentially creating a downward pressure on their prices, the propensity of whales to adopt a long-term buy-and-hold approach could counterbalance this extra supply.
It’s critical to remember, however, that movements from large accounts aren’t always confirmed by future price actions. For instance, in mid-February, XRP whales purchased 60 million tokens when the asset was priced at $2.63, only to witness the price fall to $2.04 in just over ten days.
That said, the continued interest from the XRP whales could help to mitigate bearish tendencies until a more robust bullish indicator surfaces. Such a catalyst could be just around the corner given that the longstanding legal battle between the SEC and Ripple Labs is likely to reach a conclusion soon.
FAQs
Is XRP a good long-term investment?
As with any investment, a careful market analysis, scrutiny of development updates, and competitor positioning are vital before investing in XRP. Its scalable architecture and low transaction costs have however placed it in the spotlight.
What is Ripple Labs?
Ripple Labs is the digital payment protocol company that created XRP. It serves as an open payment system allowing for the transfer of money across the globe swiftly and inexpensively.
How do I buy XRP?
XRP can be bought on a variety of cryptocurrency exchanges using either fiat currencies or other cryptocurrencies. Always ensure to use a reputable exchange for your transactions.
