XRP Value Soars
The price of XRP is currently consolidating at $0.60 on January 12th, showing a 12% increase within the daily timeframe. However, the reaction of whale investors to Ripple Lab’s recent buy-back signals the potential for further gains.
On January 10th, XRP reclaimed the $0.62 level after Ripple team announced plans to buy back $285 million worth of shares from the parent company at a valuation of $11 billion. Since the buy-back announcement, on-chain data has revealed a steady increase in whale transactions on the XRP ledger network.
The price of XRP has experienced significant growth this week, with a 10% increase between January 7th and January 12th. This rally has been attributed in part to the buy-back plans revealed by Ripple Labs, the sixth largest cryptocurrency’s parent company.
The initial market reaction to Ripple’s buy-back plans resulted in XRP price reclaiming the $0.61 mark for the first time since the widespread liquidations that occurred on January 3rd. Looking beyond the price charts, the movements of whale investors in response to the buy-back news indicate the possibility of further upside.
Santiment’s whale transaction count metric tracks the real-time changes in trading activity by aggregating the number of confirmed transactions from whale investors that exceed $100,000 daily. The latest data shows that the XRP ledger network recorded 1,235 whale transactions on January 11th, a 190% increase from the 427 transactions recorded on January 6th. This is the second-highest whale transaction count for 2024, with the highest being recorded on January 3rd at 1,462 transactions.
By tracking transactions exceeding $100,000, the whale transaction count metric effectively serves as an indicator of the dominant sentiment among institutional and high-net-worth investors on the blockchain network. A sharp increase in the whale transaction count is often interpreted as a bullish signal by strategic investors.
This increase in whale transactions confirms a positive sentiment and high demand for XRP among whale investors following the buy-back news. If the whales continue to buy, it is likely that retail traders will follow suit, potentially driving the XRP price towards the $0.70 milestone.
Considering that XRP price recently broke through the $0.62 level on January 11th, the bulls may set their sights higher on a retest of $0.70 in the next rally. The parabolic stop and reverse indicator, which identifies potential reversal points, also supports this bullish prediction. As XRP is currently trading at $0.59 below the parabolic SAR dots, a decisive breakout from the short-term resistance at $0.63 could trigger a significant price increase.
Therefore, if traders take advantage of these signals and increase their buying, XRP could potentially soar towards $0.70. However, if the bears successfully push the price below $0.50, it could invalidate this prediction. Nonetheless, the bulls are expected to defend the psychological support zone at $0.55, which could lead to an early rebound.
