“Massive $760 Million Investment Injected into the Economy”
Ripple’s price experienced a setback of 8% and reached a weekly low of $0.53 on February 22. However, the fact that traders are refraining from selling suggests that there is a widespread intention to wait for a rebound.
Earlier in February, the price of Ripple (XRP) reached a peak of $0.58, benefiting from the positive momentum in the layer-1 crypto sector.
Despite the price of XRP falling below $0.55 this week, investors have chosen to hold onto their coins rather than participate in a large sell-off.
XRP’s price performed well alongside other top-ranked layer-1 coins during the recent crypto market rally. Increased demand and positive sentiment surrounding altcoins in this sector, combined with a $120 million influx from crypto whales, contributed to the rally.
Although XRP didn’t experience the same level of gains as rival layer-1 coins like Avalanche (AVAX), Solana (SOL), and Ethereum (ETH), which all saw double-digit increases, its 7.4% uptick was sufficient to push it to a new monthly high of $0.58 on February 15.
However, after an unsuccessful attempt to surpass the $0.58 mark on February 19, XRP’s price dropped sharply by 8% to a low of $0.53.
Despite this pullback, on-chain data indicates that most current XRP holders remain optimistic about the price.
The trading volume for XRP reached $1.1 billion during the peak of the rally on February 15, according to Santiment. However, as prices began to decline, trading activity for XRP decreased significantly.
As of February 22, only $357.9 million worth of trades were recorded in the last 24 hours, a decrease of $760 million compared to the previous week’s peak.
Although the trading volume dropped by 73.2% between February 15 and February 22, the price of XRP only declined by 8%. This indicates that investors have confidence in XRP and expect the current pullback to be followed by a swift rebound.
Furthermore, the overall growth of the altcoin market cap this week, with Bitcoin (BTC) and Ethereum (ETH) both reaching historic highs, further supports the optimistic outlook for a potential rebound in XRP’s price.
Considering the reduced selling pressure in the market this week, it is likely that XRP will be able to avoid further decline below $0.50. However, if there is an early rebound, the bulls may encounter initial resistance at the previous peak of around $0.58.
If the bullish scenario unfolds as predicted, XRP’s price could experience a significant breakout towards $0.60.
On the other hand, if the bears manage to push the price below the critical $0.50 level, it could invalidate the optimistic price forecast. In the short term, the buy wall at $0.49 is expected to provide substantial support.
It will be interesting to see how the situation unfolds for XRP in the coming days.
