On July 14, XRP price retreated by about 10% to $0.76, but compared to its lowest price the previous day, it was still up around 65%.
Related: Why is XRP price up today?
At its highest in the last 24 hours, the XRP/USD pairreached $0.93, its best level since December 2021, just shy of hitting the $1 mark.
A whale-backed XRP rally
Certain indicators show that XRP’s ongoing price pump may not be just a short-term reaction to the positive news for Ripple.
For instance, the duration of XRP’s massive pump coincides with its trading volumes reaching a 10-month high. Meanwhile, the number of XRP whale transactions — or wallets holding more than $100,000 — climbed to their best level in 2023, suggesting that the richest investors back the XRP rally.
“If key whale and shark addresses are increasing their supply going into this pump, then it is a get foreshadowing signal that the pump may just be getting started, and it’s a sign of good things to come,” noted Brian Q, analyst at data analytics platform Santiment.
Furthermore, the XRP price gains come in line with a rise in the supply held by entities with a 100,000-10 million token balance.
In other words, whales have not sold the rally but actually accumulated XRP, suggesting most want to position themselves for further gains.
XRP to $1 and beyond?
From a technical standpoint, XRP can test the key $1 level in the coming days, but its potential to continue its rally beyond looks weak for the time being.
Notably, the pullback on July 14 occurred near a resistance confluence comprising of a multi-year horizontal trendline (purple) and a giant descending trendline ceiling (black).
In addition, XRP’s weekly relative strength index (RSI) has turned overbought, raising its correction prospects.
Should a pullback occur, XRP price risks dropping toward its multi-year ascending trendline support near $0.45 by September, down around 55% from the current price level.
Other price targets include the token’s 50-week exponential moving average (50-week EMA; the red wave) near $0.48 and 200-week EMA (the blue wave) near $0.50.
On the other hand, an overbought RSI could also result in the XRP price consolidating sideways inside the $0.75-1 range.
If XRP price decisively breaks above $1, then its next price target by September will likely be near $1.35, a resistance level from the August-December 2021 session.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.