$40 Million in Funding Secured for New Project
Can Whale Investors Spark a Rebound in XRP Price in March?
The price of Ripple (XRP) opened trading at $0.53 on February 26, which was down 8% from its monthly peak of $0.58 recorded on February 15. After a positive performance in the first half of February, the XRP price has been on a steep downward trend in the past week. However, there are early signals that suggest a positive start to March 2024 as whale investors begin to buy the dip.
In February 2024, the XRP price underperformed compared to the average altcoin market. While it started positively, rising 19% from $0.49 to $0.58 between February 1 and February 16, it has since struggled to sustain the momentum. In the second half of February, XRP fell behind the overall altcoin market average, losing 8% of its gains as prices dipped to $0.53.
The attention and market demand for XRP have declined as capital flows towards Ethereum and the chart-topping NVIDIA corp in the DeFi and Crypto AI sectors. According to TradingView’s TOTAL2 chart, the global altcoin markets received capital inflows worth $194 billion in February 2024, representing a 26% growth. In comparison, XRP’s month-to-date performance of 9% falls short of the market average.
However, recent movements observed among whale investors suggest that this trend could flip bullish for XRP in the coming weeks. Despite the price dip, a strategic group of price-savvy crypto whales have been observed buying XRP aggressively. Data from Santiment shows that these whales have added 70 million XRP coins to their cumulative balances between February 16 and February 26, bringing their total holdings to 3.66 billion XRP.
This buying pressure from whales could have a positive impact on the XRP price heading into March 2024. It could incentivize retail investors to adopt a bullish stance, resulting in increased market demand. Additionally, historical trends show that the buying patterns of this particular whale cohort have often preceded XRP price rallies, indicating the potential for a significant price upswing.
Based on recent market trends, it is more likely that the XRP price will enter an upswing toward $0.60 in early March 2024 rather than a downswing below $0.50. However, the Parabolic Stop and Reverse (SAR) technical indicator identifies the $0.57 area as a major short-term resistance for XRP bulls. If the bulls can break above this level, a retest of $0.60 could be possible.
On the downside, the bears could invalidate this bullish XRP price forecast by pushing the price below the psychological support level of $0.50. However, with crypto whales currently buying the dip, this scenario seems unlikely in the short-term.
