Ripple’s XRP recently reached a six-year high of $2.49, marking a nearly 30% jump in a single day. This milestone follows years of volatility, largely due to Ripple’s ongoing legal issues with the SEC.
The surge appears linked to a significant increase in whale activity. In the last three weeks, accounts holding between 1 million and 10 million XRP tokens acquired over $697.1 million worth of XRP.
This accumulation accounts for $1.66 billion at current values. This has played a fundamental role in propelling XRP’s price by increasing buying pressure in the market.
Retail investors have also contributed significantly, with the number of XRP wallets reaching an all-time high of 5.5 million. New wallet creation shows remarkable growth, indicating increased adoption and transaction activity on the XRP Ledger.
Technical indicators, like the Moving Average Convergence Divergence (MACD), suggest positive momentum for XRP. The Ichimoku Cloud is providing support rather than resistance, indicating the potential for further price increases.
Despite these indicators, if XRP becomes overbought or legislative challenges arise, it could face downward pressure. The continuation of the rally could see its value reaching $3, but it remains contingent on sustaining current momentum.
