- Whale activity surges, signaling a potential breakout above XRP’s current resistance range.
- Rising daily active addresses and growing options interest suggest bullish momentum for XRP.
Whale activity in the Ripple [XRP] market has surged dramatically, with nearly 1 billion coins bought in the last 24 hours. This sudden spike in whale purchases comes after a period of relative market stability.
It raises questions about whether this influx of large buys can propel XRP out of its current price range. Will the increased buying pressure be enough to spark a breakout, or will the price face further resistance?
How does whale activity impact XRP’s price action?
The dramatic increase in whale purchases coincided with a period of heightened volatility in the price.
At press time, the coin was confined within a narrow trading range, fluctuating between $2.32 and $3.50. XRP traded at $2.32, marking a 13.04% decline.
However, the surge in whale activity signaled that the asset may soon test the upper boundary of this range. The RSI was neutral, sitting at 45.61, which indicated that there was still plenty of room for upward momentum.
Therefore, a breakout above the $2.55 resistance level could set the stage for a larger rally. A move past this point would likely trigger renewed buying interest, pushing XRP towards higher levels.
Source: TradingView
Is the surge in daily active addresses a sign of growing interest?
XRP has also seen a rise in daily active addresses, with over 135,000 recorded on the 4th of March. This surge suggested that interest in the altcoin was growing, possibly due to the whale activity or other market factors.
An increase in daily active addresses often correlates with a larger and more sustained price movement.
Therefore, the combination of rising whale purchases and growing engagement from regular users could create the perfect conditions for an upward trend.
As more people become involved in the market, the chances of XRP breaking through resistance levels increase.
Source: Santiment
What the derivatives market tells us
The derivatives market revealed a mixed but potentially bullish outlook. Despite a 26.34% decrease in volume and a 25.99% drop in Open Interest, the Options market has seen massive growth.
Specifically, Options volume has surged by 532.92%, and open interest has increased by 326.50%.
These changes suggest that investors are positioning for potential volatility, with many anticipating significant price movements.
The increased interest in Options indicates that traders expect XRP’s price to experience larger fluctuations soon, which could help trigger a rally.
Source: Coinglass
Can XRP break out of its current price range?
The surge in whale activity, combined with the increase in daily active addresses and growing options interest, suggests that XRP has a solid chance of breaking out.
While the price has faced some short-term resistance, these factors point toward a potential upward move in the near future.
Therefore, it’s reasonable to expect XRP to test higher price levels in the coming weeks. The influx of whale buying pressure and market engagement could finally push the coin past its current range and spark a larger rally.
