- Despite uncertainty about Ripple’s transaction, XRP failed to drop below $0.56.
- On-chain metrics and technical indicators suggest a price increase in the short term.
In the early hours of the 20th of February, Ripple [XRP] moved 60 million tokens between wallets. According to Whale Alert, the transaction went from Ripple’s wallet to an unknown wallet.
At the time the transaction happened, it was worth $34.08 million while XRP changed hands at $0.56.
Source: X
As of this writing, AMBCrypto sources could not confirm why Ripple made the transfer. However, since it was not an exchange, it was less likely that the blockchain-payment firm planned to sell the tokens.
XRP wants to climb higher
Nevertheless, some comments under the post were negative, suggesting that some participants were skeptical about the intent behind the move. This sentiment was not surprising as some past transactions like this would have seen XRP’s price decrease.
Therefore, one can assume that the bullish strides XRP had lately have been instrumental to the strength it showed in the face of FUD. For the unaccustomed, FUD is an acronym for Fear, Uncertainty, and Doubt.
It happens when negative opinions or misinformation appear, and sometimes, this causes panic among investors.
Sometimes, FUD also causes a jump in volatility. However, indications from the Bollinger Bands (BB) showed that the sentiment was not enough to trigger a spike in volatility.
Further, signals from the BB showed that XRP could trade between $0.53 and $0.56 for the time being.
When it came to the Supertrend, the indicator was positioned at $0.54. This indicated a possible buy signal. Therefore, if the price of the Ripple native token drops to $0.54, it could be a good entry for traders looking to open long positions or those who want to hold for a while.
Source: TradingView
Aggressive buying may drive the price to $0.60
In addition, the Aroon indicator supported a bullish XRP bias. At press time, the Aroon Up (orange) was 92.86% while the Aroon Down (blue) was zero.
Should this remain at similar positions, then XRP might make attempts at hitting $0.60. However, if the position changes in favor of the Aroon Down, XRP’s price might drop to $0.53.
From an on-chain point of view, AMBCrypto noticed that the Social Dominance has been increasing. As of this writing, XRP’s Social Dominance was 1.487%, indicating that the cryptocurrency was one of the most talked-about assets.
Concerning the price, the hike in the metric could suggest a local top.
But the Social Dominance was not as high as it was on the 1st of February, Therefore, XRP might have some upside potential in it. A look at the Funding Rate showed that it hit the highest point since the 3rd of January. As of then, XRP’s price increased to $0.63.
Source: Santiment
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If the Funding Rate remains high while XRP moves higher, it means buyers are more aggressive.
The reasonable inference here could be potentially bullish and the price might key into the support while XRP might rise to $0.60.
