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Can XRP Bulls Overcome $950M Sell Pressure and Surge Past $4?
In today’s xrp news, XRP has surged back above the crucial $3.00 mark during early Asian trading sessions. This upward momentum coincides with Bitcoin’s impressive rally, which has provided a favorable environment for altcoin investments. However, this surge is accompanied by significant concerns, as on-chain data reveals that 320 million XRP, valued at approximately $950 million, has been transferred to exchanges in the past week. This influx could pose a challenge for buyers, especially as the price approaches a densely populated resistance zone.
As excitement builds around exchange-traded fund (ETF) developments and Ripple’s strategic banking initiatives, the next phase for XRP will depend heavily on whether buyers can absorb this looming supply and push for a decisive breakout toward $4.00.
Bitcoin’s Momentum Fuels XRP’s Potential
The recent price action is significantly influenced by Bitcoin’s spike above $125,000, a historically advantageous scenario for major altcoins like XRP. Traders have noted that seven active spot XRP ETF applications are due for critical decisions in October, which could serve as pivotal catalysts for the fourth quarter. Additionally, Ripple’s application for a U.S. OCC banking license aims to enhance institutional-grade custody, settlement, and liquidity services, further solidifying its market position.
Earlier this week, accumulation trends in Asia indicated that whale-related wallets capitalized on price dips between $2.95 and $3.00. This accumulation has contributed to XRP’s bullish outlook on daily charts, suggesting a positive trend for the cryptocurrency.
XRP’s Technical Landscape: The Battle for $3.10-$3.30
From a technical perspective, XRP maintains a bullish structure. Currently, the price is stabilizing around the $2.95 to $3.00 range, with the 50-day simple moving average (SMA) standing at approximately $2.93. Parabolic SAR support at $2.74 further cushions potential downside movements. Traders are closely monitoring for a daily close above the $3.12 to $3.30 range, which could confirm breakout conditions.
Breaking through this resistance with robust trading volume could propel XRP toward price levels between $3.38 and $3.67, eventually reaching the $3.95 mark. If bullish momentum persists, extensions into the $4.00 to $4.20 range become plausible. The relative strength index (RSI) at 54 indicates that there is still room for growth before reaching overbought territory, while a forthcoming bullish crossover in the moving average convergence divergence (MACD) supports the continuation of this trend.
Will Bulls Protect Against Supply Pressure?
The primary risk for XRP lies in renewed supply pressure, as exchange balances have risen from 3.45 billion to 3.85 billion XRP between September 26 and October 5. The increase in ‘Age Consumed’ metrics suggests that some long-term holders are taking profits, which could lead to increased selling pressure.
If these tokens find their way back into the market as sell orders, bulls will need to defend the $3.00 to $2.93 levels to avoid a decline toward $2.85 to $2.75. Conversely, a rapid absorption of sell orders in the $3.10 to $3.30 range would signal strong market depth, potentially triggering trend-following buying flows.
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As the market evolves, XRP’s ability to navigate the complexities of supply and demand will be crucial in determining whether it can sustain its bullish trajectory and reach the coveted $4 mark.
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