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  • Ripple eyes significant breakout above $0.3 if the swings past the descending triangle’s hypotenuse.
  • The number of whales within the XRP ecosystem has rallied extensively since the beginning of the year, suggesting that buying pressure is rising.

Ripple is on the verge of a massive breakout amid the extended consolidation. The daily close under $0.3 and the 50 Simple Moving Average on the 4-hour forced XRP to explore levels under $0.27. However, a recovery seems imminent with the price reclaiming the position above the 100 SMA.

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Ripple draws nigh to a critical technical barrier

At the time of writing, XRP/USD is dancing at $0.28. Its immediate upside is limited by the 50 SMA. However, the 4-hour chart brings to light the formation of a descending triangle pattern. Although this pattern is generally viewed as bearish, a breakout above the hypotenuse would result in a 40% upswing to $0.42.

Trading above the 50 SMA will validate the uptrend. Moreover, if Ripple makes a daily close above the critical barrier at $0.3, buying orders are likely to surge, creating enough tailwind to push XRP upwards.

XRP/USD 4-hour chart

XRP/USD price chart
XRP/USD price chart by Tradingview 

According to Santiment, large volume holders of XRP have been growing since the beginning of the year. For example, whales holding between 10,000 and 100,000 XRP are holding at nearly 103,500 from roughly 98,000 on January 1. A similar growth pattern has also been seen with the addresses having between 100,000 and 1 million XRP, which rose from approximately 16,300 to 17,250 in the same period.

Ripple holder distribution

XRP holder distribution
Ripple’s holder distribution by Santiment

The increase in the number of whales suggests that buying pressure is building behind XRP. Therefore, this is a bullish sign for the token, likely to validate the expected upswing.

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It is worth mentioning that the bullish outlook will be invalidated if XRP fails to close the day above the 50 SMA and the barrier at $0.3. On the other hand, losing the support at 100 SMA will see losses toward $0.25 return into the picture.

Ripple intraday levels

Spot rate: $0.285

Relative change: 0.0077

Percentage change: 3%

Trend: Bullish

Volatility: Growing

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(Excerpt) Read more Here | 2021-01-18 06:22:44

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