- XRP is showing strong signs of a potential recovery, supported by technical indicators and a massive 400 million XRP transaction, which suggests institutional involvement or whale activity.
- If XRP breaks above $2.70, a retest of $3.00-$3.20 is likely, but failure to hold $2.20 support could push it down to $1.66.
The cryptocurrency market is once again buzzing with excitement as XRP shows strong signs of a potential recovery. Recent on-chain data indicates a significant increase in transaction volume, hinting at institutional involvement or whale activity. Combined with key technical indicators, this surge suggests that XRP could be gearing up for an upward move.
A Strong Recovery in the Making
After a sharp correction from its recent high of $3.20, XRP found solid support around the $2.20 mark. This level coincides with the 200-day moving average (MA), forming a foundation for a potential bullish reversal. Currently, XRP is attempting to reclaim key moving averages, including the 50-day MA, which could provide the momentum needed for a sustained uptrend.
Historical price patterns also suggest an optimistic outlook. A previous rally was sparked by a broken wedge pattern, and the current price structure hints that history may repeat itself. If bullish momentum continues and XRP successfully breaks above $2.70, a retest of the $3.00 resistance level is highly likely. However, failure to hold support at $2.20 could push the asset back to $1.66, aligning with the 200-day MA.
Massive 400 Million XRP Movement
On February 10, on-chain data recorded a substantial spike in XRP transactions, with over 400 million XRP being transferred in a single day. This sudden surge in network activity is often associated with institutional settlements or large-scale accumulation by whales. Historically, such movements have preceded significant price changes, reinforcing the potential for a rally in the near future.
Key Levels to Watch
Traders should closely monitor crucial support and resistance levels as XRP approaches a decisive phase:
- Support: $2.20 (critical level); $1.66 (potential fallback zone if support fails)
- Resistance: $2.70 (breakout point); $3.00 – $3.20 (next target range if bullish trend continues)
For traders looking to capitalize on XRP’s next move, setting buy orders around $2.20-$2.30 with an exit target of $3.00-$3.20 could provide an attractive risk-to-reward ratio.
Final Thoughts
With strong on-chain activity and technical indicators pointing towards stabilization, XRP appears to be entering a recovery phase. While a bullish breakout remains a possibility, traders should stay vigilant, watching for confirmation signals before making decisive moves. The coming days will be crucial in determining whether XRP can sustain its upward momentum or face another correction. Either way, the market remains on high alert for the next big move in XRP’s price action.
