The cryptocurrency market has been experiencing a period of volatility, but XRP could be poised to break to the upside. As investors and traders gear up for the upcoming potential gains, several key metrics to watch out for could give insights into the future of XRP’s price.
XRP Could Be Poised For A Rally
Over the past week, XRP has shown signs of bullish momentum, with the cryptocurrency price rising from $0.46 on April 21 to $0.47 at the time of writing. The surge in price could be attributed to several factors, including the ubiquitous uptrend in the market.
According to the XRP price 4-hour chart, a possible uptrend could occur soon. The asset has formed a double bottom on the 1-day time frame and is now set to shape a W pattern fully.
The token has major high liquidity at $0.53, which could support an extension in the bullish trend as major players target it. Though the chart appears imprecise, should the asset continue its upward momentum and not invalidate the marked-out W pattern, it could rally and trade at the $0.5 region in the coming weeks.
Key Metrics To Keep An Eye On
Alongside the asset validating the W pattern on the chart, XRP trading volume is one of the crucial metrics to watch out for, as it indicates the level of interest among retail traders.
These retail investors have the potential to help solidify the current bullish price action for XRP. According to data from CoinMarketCap, the token’s daily trading volume has remained consistently high, indicating strong investor interest and potentially foreshadowing a price increase. the token’s daily trading volume has surged from $1.4 billion seen 5 days ago to $1.6 billion in the last 24 hours.
Whale action on XRP’s is another important metric to watch out for. On the XRPL network, significant whale transactions have been recorded through on-chain data, which can potentially sway the XRP coin’s price in favor of further profits.
Whale transactions refer to large cryptocurrency transactions, typically carried out by institutional investors or high-net-worth individuals. These transactions have the potential to move markets and are closely monitored by traders and investors alike.
Factors contributing to XRP’s potential rally include the regulatory environment and its legal battle against the U.S. Securities and Exchange Commission (SEC). As the XRP case continues, any positive news regarding regulation could drive up demand for the cryptocurrency.
Featured image from iStock, Chart from TradingView