XRP is showing reversal signals and strong accumulation, with the potential to break above the $3.4 mark and establish a new historical peak in the near future.
The positive trend of XRP is driven by optimistic market sentiment, accumulation from investors, and expectations of interest rate cuts from the Federal Reserve, which could help prices rise even further.
MAIN CONTENT
XRP is reversing strongly with accumulation exceeding the level of February, expecting to establish a new peak.
Positive sentiment from the Fed's potential interest rate cuts drives capital flow across the market, leading to exceptional growth of BTC, ETH, and XRP.
The capital accumulation and technical signals confirm a sustainable bullish outlook for XRP in the short and medium term.
What is XRP?
XRP is a cryptocurrency operating on the Ripple platform, designed to support fast, low-cost money transfers globally.
XRP is known as one of the largest cryptocurrencies in the world by market capitalization. XRP's primary role is as a liquidity bridge, helping banks and financial institutions efficiently transfer money internationally. With fast transaction speeds and low costs, XRP is gradually becoming a popular choice for cross-border money transfer solutions.
What is the reversal trend and accumulation level of XRP in August?
XRP reversed strongly when it recovered from the support zone of $2.7 – $2.8 for the second time in August, showing accumulation equivalent to the record level of February.
After touching the support zone, optimistic sentiment spread, helping XRP recover significantly. Data from Glassnode recorded that the net exchange position turned deeply negative in the second half of August, reflecting increased accumulation by investors, reducing supply on exchanges. This is seen by the market as a precursor signal for the continued upward trend of XRP in the coming weeks.
"The TD Sequential indicator gave a buy signal just before the market exploded, catching the local bottom of XRP."
- Ali Martinez, Cryptocurrency Analyst, X, 2024
The consensus between accumulation and technical signals creates momentum, expecting XRP to soon re-establish or surpass the old peak.
What drives positive sentiment in the cryptocurrency market recently?
Expectations of the Fed cutting interest rates have spread a positive flow across the stock and cryptocurrency markets, creating leverage for many assets, including XRP, to grow.
On August 22, Fed Chair Jerome Powell left the option of interest rate cuts open. According to the CME Group's Fed Watch Tool, the market estimates a 75% probability that the Fed will cut rates in September. In his speech at Jackson Hole, Wyoming, he showed a clearer support for an expansionary monetary policy, which was welcomed by the market.
"Expectations of interest rate cuts have always been a major catalyst for capital flowing into risky assets like cryptocurrencies and stocks."
- Fed Watch Tool report, CME Group, 8/2024
The Dow Jones index rose 600 points, leading to a strong recovery of Bitcoin, Ethereum, and XRP. Bitcoin rose from $111,600 to $116,300 (up 4.2%), and Ethereum increased by 14.87% to $4,833 in just a few hours. This positive capital flow spread to XRP, maintaining the overall market recovery trend.
What do technical signals and capital momentum indicate about XRP price?
XRP shifted to a positive trend when it surpassed the $2.98 mark and maintained above important moving averages, while the CMF indicator confirmed significant capital inflow into the market.
After breaking the lower peak at $2.98, XRP price stabilized above the 20 and 50-day moving averages – a sign that bullish momentum still leads the trend. CMF exceeding +0.05 indicates that the new money flowing into the system is large enough to support the next increase. If it holds the demand area at $2.95, XRP is likely to approach the resistance area of $3.4 to re-test the historical peak.
What is notable about the current accumulation of XRP compared to previous periods?
The accumulated XRP at the second half of August was assessed to have exceeded the level of February of the same year, reflecting strong determination and expectations from long-term investors.
The net position index on exchanges turning deeply negative is one of the strongest technical accumulation signals, indicating that supply is being drawn into personal wallets and demand for long-term holding is rising significantly. This also serves as a reliable foundation supporting a potential sustainable upward trend, especially in the context of continuous macroeconomic factors and supportive news appearing recently.
What is the price outlook for XRP in the coming weeks?
XRP has a sustainable price increase outlook and the potential to establish a new peak around the $3.4 area thanks to the convergence of capital accumulation, technical signals, and favorable market sentiment.
With a series of supporting factors from historical accumulation, technical buy signals, and a wave of new capital inflowing from macroeconomic milestones such as the Fed's potential interest rate cuts, XRP is forecasted by experts to maintain its bullish trend. Particularly, if it successfully surpasses the $3.4 threshold, XRP could establish a new peak price range and continue to spread confidence across the cryptocurrency market.
FAQ - Frequently Asked Questions
What is XRP?
XRP is the cryptocurrency of the Ripple platform, designed to optimize cross-border money transfers quickly and at low cost.
What factors are supporting the price increase of XRP?
Key factors include strong accumulation from investors, expectations of Fed interest rate cuts, and large capital inflows into crypto.
What price level can XRP reach in the near future?
The most positive scenario is that XRP could exceed $3.4 and set a new peak if capital flow continues to operate as it currently is.
Why are technical signals important for XRP price trends?
Technical indicators confirm bullish momentum, along with capital accumulation that will drive XRP's potential breakout.
Where is the data and analysis about XRP's movements sourced from?
Reference data from Glassnode, TradingView, CME Fed Watch Tool, and reputable cryptocurrency analysts.
Source: https://tintucbitcoin.com/xrp-huong-toi-dinh-moi-ath/
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