Ripple’s price saw a significant recovery this week, primarily driven by increased whale activity.

XRP surged to $0.5705 on Tuesday, marking its highest level since April 12th and representing a 50% increase from its lowest point this month. This price boost aligns with substantial whale accumulation. According to data, large XRP wallets purchased over $300 million worth of tokens between July 12th and 15th.

This level of XRP accumulation seems to have positively impacted their 36% surge from July 7th to 13th. Keep an eye on whether these key stakeholders continue accumulating.

Large transactions often signal insider buying before significant events. This trend is also evident in technical charts. The accumulation/distribution (A/D) indicator has reached a record high, indicating strong accumulation. Additionally, XRP has surpassed key resistance at $0.4845, its lowest swing in January, and has moved above the 200-day and 50-day Exponential Moving Averages (EMA). The Average Directional Index (ADX) is at 34, suggesting strong momentum.

The ADX is a popular trend indicator that measures the strength of a trend. A figure of 25 and above typically signifies strong momentum.

Ripple Rises Amid Risk-On Sentiment

Ripple’s rally occurred in a risk-on market environment. The US dollar index (DXY) decreased to $104.40 from a year-to-date high of $106.30. The VIX index fell to 13, while American stock indices reached new highs. The Dow Jones soared to an all-time high of $40,700, and the S&P 500 and Nasdaq 100 indices traded at $5,640 and $18,500, respectively.

Meanwhile, most cryptocurrencies continued to rise. Bitcoin retested the crucial resistance point at $65,000 for the first time in weeks, and the crypto fear and greed index approached the greed zone.

XRP Price is Overbought

Despite the recent rally, there is a risk that XRP’s price may pull back soon. The Relative Strength Index (RSI) has moved to 72, indicating overbought conditions, and the Stochastic oscillator lines have also reached the overbought level.

Another risk that Ripple faces is on its fundamentals. Ripple was created to facilitate cross-border transactions by companies in the banking and cross-border industry. However, some companies have found stablecoins or tokenized platforms to be better alternatives to Ripple’s on-demand liquidity feature. For instance, MoneyGram has a partnership with Stellar that allows users to send and receive USDC stablecoins globally with ease.

For more updates on Ripple and other cryptocurrencies, stay tuned to Global Crypto News.

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