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Can XRP Overcome $950M Sell-Off and Climb to $4? Discover the Key Factors Driving Its Surge!
XRP has made headlines in the latest xrp news, surging back above the $3.00 mark during early Asian trading hours. This movement signals a reclaiming of key psychological support, fueled by Bitcoin’s impressive rally to new highs. However, this surge comes with a significant caveat: on-chain trackers have reported that a staggering 320 million XRP—valued at approximately $950 million—has been transferred onto exchanges in the past week. This supply influx poses a potential test for buyers, particularly as XRP approaches a densely populated resistance zone.
As discussions surrounding Exchange-Traded Funds (ETFs) heat up, alongside Ripple’s banking aspirations, the future trajectory of XRP hinges on whether bulls can absorb this substantial supply and push for a clean breakout toward the coveted $4.00 level.
The Impact of Bitcoin’s Momentum and ETF Buzz
Bitcoin’s recent surge above $125K has historically created an advantageous environment for large-cap altcoins like XRP. Market participants are closely monitoring seven active spot XRP ETF filings, which are set for decision dates in October. These could act as crucial binary catalysts as we move into the fourth quarter. Additionally, Ripple’s application for a U.S. Office of the Comptroller of the Currency (OCC) banking license could significantly enhance institutional-grade custody solutions, settlement processes, and on-chain liquidity services.
Throughout the week, signs of persistent accumulation were evident during Asian trading hours, with whale-associated wallets strategically purchasing dips around the $2.95–$3.00 range. This underlying support has contributed to XRP’s upward price trends reflected in the daily chart.
XRP’s Technical Structure: A Bullish Tilt
Technically, XRP appears to maintain a bullish structure. The price is establishing a solid base between $2.95 and $3.00, with the 50-day Simple Moving Average (SMA) positioned near $2.93 and Parabolic SAR support at approximately $2.74, providing additional downside protection. A multi-month symmetrical triangle formation from July is looming overhead, creating anticipation among traders.
Market participants are keenly watching for a daily close above the $3.12–$3.30 range to confirm breakout conditions. A clear push through this resistance zone on strong trading volume could pave the way toward target levels between $3.38 and $3.67, potentially extending to the $4.00–$4.20 area if bullish momentum continues. The Relative Strength Index (RSI) at 54 indicates that there is still room for further upward movement before entering overbought territory. Furthermore, a pending bullish cross on the Moving Average Convergence Divergence (MACD) supports ongoing positive price action. Derivatives data also reflects a constructive outlook, with open interest rising by 4% to $8.9 billion, indicating increasing market participation.
Assessing the $950M Supply Challenge
The primary risk for XRP stems from renewed selling pressure, as exchange balances have risen from 3.45 billion to 3.85 billion XRP between September 26 and October 5. Meanwhile, spikes in ‘Age Consumed’ suggest that some long-term holders may be taking profits, adding to the potential supply issue. Should these tokens begin to rotate into sell orders, bulls will need to defend the critical $3.00 and $2.93 levels to prevent a downward drift toward the $2.85–$2.75 range. Conversely, if buyers can quickly absorb offers between $3.10 and $3.30, it would signal strong market depth and likely attract additional trend-following investment.
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In summary, XRP’s recent price action reveals both opportunities and challenges as it seeks to break through significant resistance levels amidst substantial supply pressures. The coming days will be critical in determining whether bulls can maintain their momentum and push XRP toward the $4.00 target.
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