- XRP’s market behavior mirrors 2017 breakout, suggesting significant upside potential.
- Retail adoption surges, with small wallet growth fueling XRP’s market momentum.
- Inflows surpass outflows, signaling potential for renewed upward price movement.
XRP has recently experienced a significant uptick in its market activity, with an intriguing pattern formation that resembles the 2017 breakout. Analyst JAVON MARKS highlights that this new breakout is larger, more than double the size of its previous formation, which eventually led to two target prices being met. XRP’s price has now hit its first target, and the next goal could be as high as $99, a 2,900% increase from its current position.
Retail Adoption Drives Market Behavior
Retail interest in XRP has surged, reflecting a broadening adoption of the asset. According to data from Santiment, the number of wallets holding fewer than 100 XRP has seen a sharp rise in recent months.
In just two months, these small wallets grew by 11.6%, marking the fastest and most sustained increase in XRP’s history. This surge now accounts for 71.5% of the total non-empty wallets, with 4.34 million smaller wallets out of the 6.07 million total. This is significant because it indicates growing retail engagement, a factor that could contribute to the asset’s long-term stability and price appreciation.
Momentum Shifts and Market Indicators
The price of XRP recently surged by 85%, reaching a high of $3.15, before settling at $3.07. During this period, the price fluctuated between $3.05 and $3.15, showing a healthy amount of market activity.
However, the momentum has recently slowed, with some bearish indicators emerging. XRP’s Relative Strength Index (RSI) is currently at 59.05, placing it in the neutral zone. Although there are no immediate overbought or oversold signals, the trend is slightly downward.
Furthermore, the Moving Average Convergence Divergence (MACD) line is now positioned below the signal line, suggesting a bullish momentum. Despite these signals, the price remains above $3, reflecting the possibility of further upward movement.
Inflows and Outflows: Market Sentiment Shifts
XRP’s market dynamics have seen a notable shift in recent weeks, particularly in terms of inflows and outflows. After experiencing heavy selling pressure, marked by outflows of over $200 million in late December, XRP has witnessed a period of accumulation.
Notably, large green net inflows were recorded in late November and early January, which coincided with price surges above $3. This shift in market sentiment could signal the beginning of another upward momentum phase for XRP.