Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
XRP(CRYPTO: XRP) price surged to its highest level since January last year as the crypto market rally intensified. Ripple peaked at $1.6963, up sharply from the year-to-date low of $0.9870. This rally has, however, brought it to the most overbought level since July last year.
XRP ETF Inflows are Rising Amid Resilient Whale Buying
Ripple token staged a strong comeback this week, reaching its highest point since January. This rally coincided with the ongoing crypto market rally that pushed top coins like Bitcoin(CRYPTO: BTC), Ethereum(CRYPTO: ETH), and Cardano(CRYPTO: ADA) to their highest levels in months.
It also happened as the Crypto Fear and Greed Index jumped to the greed zone of 73, its highest level in months. The soaring index is a sign that investors have embraced a risk-on sentiment in the market.
One sign of this growth is investors piling into XRP ETFs. These funds attracted more than $18 million in inflows on Friday, bringing weekly inflows to $40 million, the biggest increase since May.
The Bitwise and Franklin XRP ETFs added more than $12.2 million and $1.49 million, respectively, on Friday, bringing their net assets to $442 million and $433.8 million, respectively.
There are also signs that whales have been accumulating XRP tokens, a sign that they expect the price to rebound over time. This also explains why the amount of XRP tokens in exchanges has continued to fall in the past few months. Over 240 million tokens have left exchanges since the start of summer.
XRP Ledger’s fundamentals are also improving. The Ripple USD stablecoin’s market capitalization has jumped to a record high of $2.1 billion from the January low of $1.5 billion. That is a sign that the token is seeing strong growth among users.
XRP Price Has Become Highly Overbought
The daily chart shows that the XRP price soared to its highest level in months on Saturday. This rebound happened after it formed a large falling wedge pattern, a common bullish reversal sign in technical analysis.
The coin has jumped above the 50-day Exponential Moving Average (EMA), a sign that bulls are gaining control. However, the risk is that the Relative Strength Index (RSI) has soared to a high of 85.4, its highest level since July last year.
There is also a risk that it is forming either a doji or a shooting star candlestick. These patterns may lead to a bearish reversal, potentially to the support level of $1.1580, its highest point in July this year.
Market News and Data brought to you by Benzinga APIs
To add Benzinga News as your preferred
Source: www.benzinga.com