After about three weeks of struggling, Ripple (XRP) seems to be mustering the strength for an upside move. The altcoin’s bearish price action late last month caused it to fall out of its short-term ascending channel. XRP is now back again in its last range thanks to its bullish performance over the past three days.
Rising from its weekly low of £0.27 to its recent 24-hour high of £0.31, XRP managed to gain 14%. It is currently trading above the same line that previously served as support. In the last 10 days of August, it displayed bullish weakness before giving up and setting the following support level at £0.27.
After the 50-day Moving Average was touched, XRP’s upward movement over the last 24 hours was restrained. Price weakness progressed as its previous push to cross back above the 50-day MA failed.
The coin has already lost some of its gains due to rising selling pressure.
The Relative Strength Index (RSI), on the other hand, shows a solid momentum at this level. According to XRP’s Money Flow Index (MFI), there has been increased accumulation since the end of August. This suggests more upside.
Whale activity has increased over the last three days, according to on-chain metrics. The increase in whale activity was shown in the whale transaction count for trades exceeding £0.86 million, which probably helped the surge.
The whale behaviour is consistent with data from XRP’s whale supply distribution and most recent price action. For instance, whales holding between one million and ten million coins saw a significant boost in their balances between September 7 and September 9. The group also experienced some outflows during the past 24 hours, which explains the selling pressure that was in effect at the time of writing.
In the last 24 hours, addresses with more than 10 million XRP experienced a modest increase. This shows that some buying pressure still exists and is preventing a bigger retracement.
The short-term price movements of XRP could be very volatile, coupled with retracements as a result of its headwinds.