XRP to Defy Imminent Sell-Offs and Hit $1? Here Are the Prospects

Ripple (XRP) tokens worth $13.32 million have been transferred from an unknown wallet to the Bitstamp exchange, Whale Alert posted on X. The transaction which occurred on December 20 came at a time when XRP was trading at $0.61.

However, the transaction was only one of many large transfers involving XRP. On December 18, a similar transaction took place, involving 26.20 million XRP, and like the recent one, the destination of those tokens was BitStamp.

Impending Sell-Offs Can’t Stop XRP

These movements have brought speculation to the crypto market that XRP may drop below $0.60. This is largely because the transactions indicate a potential sell-off while XRP risks a price decline as a result.

Despite the possibility, some analysts think that it is a good time to buy XRP before the price pumps. One of those analysts is pseudonymous trader CryptoRedQueen who used several indicators to conclude that buying XRP at $0.61 could be profitable.

– Technical Analysis –

Pair: $XRP/USDT
Timeframe: 1h
Current Price 0.6106

Indicators:
RSI: 56.53394466
ADX: 15.78516495
EMA10: 0.60832981
EMA20: 0.60832981
EMA50: 0.60832981
EMA200: 0.61697818

Recommendation: BUY

Always DYOR

— CryptoRedQueen 💎₿📈💖 (@CryptoRedQ) December 20, 2023

Another analyst who shared a similar sentiment was Bill Morgan. According to Morgan, XRP’s price has not been suppressed. He also opined via his post that whales cannot control the price or keep it under $0.60 for long.

A Ride to $0.70 Is Possible If Bulls Come In

The outcome of these assessments led Coin Edition to check out XRP’s technical state. According to the analyzed XRP/USD 4-hour chart, there was a clear resistance at $0.62 which could hinder the cryptocurrency’s attempt at reaching $1.

However, the support at $0.60 could be crucial to the move. If bulls can defend the $0.60 while accumulation increases, XRP can overcome the $0.62 resistance, and its first target could be around $0.70.

Coin Edition also looked at the Money Flow Index (MFI). At press time, the MFI was 40.98. It is important to mention that the MFI reading on December 18 was 20.64. The reading at that time indicated that XRP was oversold.

Therefore, the jump to the reading at the time of writing implies that there has been some buying pressure for XRP. Should the buying pressure continue, then XRP may rise in the $0.70 direction.

XRP/USD 4-Hour Chart (Source: TradingView)

However, the chart above shows that the token could stall around $0.61 for a while because of the Chaikin Money Flow (CMF). But if the CMF flips positive at any point, it could be a confirmation of XRP’s uptrend.

Though hitting $1 seems like a challenging task for XRP, it is not impossible. One of the reasons for this is the increasing number of Partnerships Ripple has been involved in. Lately, the blockchain firm announced that it had gotten approval from the Ireland Central Bank to become a virtual asset provider in the country.

Expanding to the country means there is a chance for more XRP adoption. So, if XRP experiences a surge in traction, it could have a positive effect on the price action. But when it will hit $1 is uncertain but remains a possibility.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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