XRP Bullish Patterns Indicate $5 Target as Korean Investors Begin Accumulating
The token has experienced a decline from $3.02 to $2.89 during the trading window of August 28-29, with a significant recovery aiming at support levels of $2.83-$2.89. Oversold signals and substantial accumulation from Korean buyers appear to have counterbalanced persistent selling pressure.
Key Insights
- XRP saw a 4.3% drop within 24 hours, while Korean exchanges absorbed 16 million XRP, indicating growing institutional interest.
- South Korea’s trend in speculative trading implies a potential stabilization of XRP prices due to local demand.
- Technical analysis reveals positive recovery momentum with critical support at $2.85-$2.86 and resistance at $3.02.
Market Context
- XRP’s steep fall followed a general market decline from August 28, 13:00 to August 29, 12:00.
- During this sell-off, on-chain data indicated that Korean exchanges acquired 16 million XRP (approximately $45.5 million), highlighting institutional appetite as retail investors scaled back.
- South Korea has been pivotal in speculative trading of cryptocurrencies, often influencing price movements in various altcoins.
- Accumulation by large wallets linked to Korean exchanges suggests that demand is helping to buffer retail selling, effectively providing a base price for XRP.
- Observing whale movements, while $200 million in DOGE was allocated to Binance (a distribution sign), Korean entities have been increasing their XRP positions (an accumulation sign).
- Activity on the XRP Ledger surged, with active addresses increasing by 20% in three days ahead of a significant event launch on September 12.
- Linklogis, a Chinese fintech firm, integrated its substantial supply-chain finance platform with the XRP Ledger, boosting its stock value by 23% and exemplifying the adoption of this technology by enterprises.
Price Movement Summary
- XRP dropped from $3.02 to $2.89, reflecting a 4.30% decline over a notable $0.17 range between peak and low.
- Heavy sell-offs around 15:00 GMT on August 28 forced prices down to $2.77 on a volume twice the daily average.
- Support materialized at $2.85-$2.86, facilitating a recovery on increased volumes from 07:00-09:00 GMT on August 29.
- In the final trading hour, XRP rebounded from $2.87 to $2.89, briefly hitting $2.91.
Technical Analysis
- Support: A significant base at $2.77, boosted by high volume; $2.85-$2.86 has converted into an accumulation zone.
- Resistance: The immediate ceiling is at $2.91; $3.02 represents a repeated barrier in the price trajectory.
- Momentum: The RSI has surged from 42 (oversold) to the mid-50s, indicating a recovery shift.
- MACD: A tightening histogram suggests an impending bullish crossover, signaling potential upside if buying momentum continues.
- Patterns: Formations such as symmetrical triangles and double-bottoms align with a broader cup-and-handle setup targeting prices anywhere between $5 and $13.
Traders’ Focus
- Monitoring whether $2.85-$2.86 support can endure during renewed selling.
- A confirmed breach above $3.02-$3.04 could trigger a rally towards $3.20.
- A breakdown below $2.77 poses downside threats, with $2.70 as the next support level.
- Continued accumulation by institutions at Korean exchanges will be crucial to maintaining momentum into scheduled events in September.
