The post Top 3 Reasons Why XRP Price Could Hit $1 This Month! appeared first on Coinpedia Fintech News
Everything is not fine with the XRP price, which is the most underrated token and has again begun to squeeze out the profits. The token, which has been one of the top-performing assets after the crucial judgment in the Ripple vs. SEC lawsuit, failed to surpass the milestone at $1. Although the bulls tried hard to reverse the bearish trend, they fell short of some momentum, which led to a drastic fall in the past seven to ten days.
Will the XRP price enter its prolonged consolidation zone below $0.4, or is a bullish rebound on the cards?
It is worth noting that the markets are responding positively and showing significant strength as investors appear to be optimistic about the yearly close. Meanwhile, after a certain rise in the price, the tokens are facing some bearish action, probably to ease the selling pressure without accumulating them. The XRP price appears to be following the same strategy as the technicals, and the on-chain indicators point towards a fine rise that is fast approaching.
Here are the top 3 reasons why the XRP price continues to remain bullish and why a fine ascending trend is fast approaching.
Whales are capitalizing on the falling prices
The ongoing price variations causing a drop in prices are basically due to retail investors shifting their focus away from the token. XRP emerged as the biggest loser in the top 10, but corporate investors or whales continued to buy XRP. the on-chain data shows that the wallets holding 10 million to 1 billion XRP held a total of 16.6 billion XRP in their cumulative balances, which soared to 16.8 billion. A jump of 20 million implies that they capitalized on the falling prices.
A huge rise in large transactions
Secondly, the months of large transactions have improved market liquidity. As the prices dropped, the number of large transactions soared, recording 113 transactions, the highest since July 31st. This rise contributes to the liquidity and depth of the market, which in turn makes investors easily buy or sell without substantial slippage. The increased liquidity may further attract high-volume traders, investors, and whales.
Media hype surrounds the XRP price
Lastly, the market sentiments, which play a pivotal role in the volatility of the token, appear to have been in favour of the bulls. As the price dropped, the traders diverted their attention from Dogecoin and Shiba Inu. The onchain data suggests that the XRP’s social dominance dropped from 3.86% to 1.5% after its rejection of $0.72. A drop in dominance, which is the total number of mentions. This indicates that the markets have dropped to the local bottom, attracting swing traders who may re-enter the market.
As the trade is approaching the crucial support levels close to $0.6, a minor pullback of these levels may have a major impact in the coming weeks. Besides, the millionaire whales are spotted buying XRP, which could be a turning point for the asset. However, the upcoming weeks can be considered pivotal to change the market sentiments which may further fuel the XRP price rally.