XRP Holds Steady Amid Ripple’s Uncertainties, Bullish Forecast Predicts Rise to $0.60
XRP-FUD could turn into FOMO in the coming days
Despite uncertainties about Ripple’s transactions, XRP did not fall below $0.56. On-chain metrics and technical indicators suggest a short-term price increase. Early on the morning of February 20, Ripple [XRP] moved 60 million tokens between wallets. According to Whale Alert, the transaction went from Ripple’s wallet to an unknown wallet. At the time of the transaction, the value was $34.08 million, while XRP changed hands for $0.56.
Unconfirmed reasons for the transaction
As of this writing, no sources could confirm why Ripple made the transfer. However, since it was not an exchange, it is less likely that the blockchain payment company intended to sell the tokens.
XRP aims upwards
Some comments under the post were negative, suggesting that some participants were skeptical about the intent behind the move. This sentiment is not surprising, as past transactions like this have often led to a price drop in XRP. Therefore, one can assume that the recent bullish moves by XRP have helped to show the strength it shows in the face of FUD. FUD is an acronym for Fear, Uncertainty, and Doubt. It occurs when negative opinions or misinformation emerge and sometimes cause panic among investors.
No increased volatility despite FUD
Indications from the Bollinger Bands (BB) however, showed that the sentiment was not enough to trigger an increase in volatility. Further signals from the BB showed that XRP could trade between $0.53 and $0.56 for now. The Supertrend indicator was at $0.54. This indicated a possible buy signal. Therefore, if the price of Ripple’s own token drops to $0.54, it could be a good entry for traders who want to open long positions or hold for a while.
Aggressive buying could drive the price to $0.60
In addition, the Aroon indicator supported a bullish XRP trend. At the time of the press release, the Aroon Up (orange) was 92.86%, while the Aroon Down (blue) was zero. If this remains similar, XRP could try to reach $0.60. If the position changes in favor of the Aroon Down, however, the price of XRP could fall to $0.53.
From an on-chain perspective
From an on-chain perspective, Social Dominance has increased. At the time of writing, XRP’s Social Dominance was 1.487%, suggesting that the cryptocurrency is one of the most discussed assets. In terms of price, the increase in the metric could indicate a local top. However, Social Dominance was not as high as on February 1, so XRP could still have some upside potential.
Conclusion
A look at the funding rate showed that it has reached the highest point since January 3. At that time, the price of XRP rose to $0.63. If the funding rate remains high while XRP is rising, it means that buyers are more aggressive. The logical conclusion here could potentially be bullish and the price could stick to the support while XRP could rise to $0.60.
