XRP's current price trend shows a steady decline while also exhibiting signs of a possible directional change. This article examines technical analysis and recent events surrounding Ripple.
Technical Analysis of XRP Prices
XRP's price has been declining since March 26, with internal charts showing a drop from a high above $2.40 to just above $2 by April 2. As of April 5, it remains above $2. Traders observed a TD Sequential buy signal on April 3, indicating possible exhaustion of the current trend. This signal may suggest the end of the current decline, but further price growth is necessary to confirm a trend change.
Unusual Release from Ripple
On April 3, Ripple released 1 billion XRP, which is unusual as tokens were previously released on the 1st of each month. According to Whale Alert, the movements included transfers of 500 million, 200 million, and 300 million XRP. It is notable that after this release on April 3, 700 million XRP were locked back into escrow on April 2. This strategic release comes amid increasing institutional interest in XRP due to the new CryptoTradingFund framework.
XRP Price Predictions Following Unlock
The XRP community is actively discussing the effects of the recent token unlock, particularly amid rumors of a Ripple ETF. Some users note that most unlocked tokens typically return to escrow. The crucial question now is how the unlocked XRP will affect the markets. If XRP's price remains above $2, this would confirm a potential bullish reversal. Technical indicators suggest increasing momentum, which may propel prices toward $3.55.
At the time of writing, XRP's price is at $2.15, up 5.73% for the day. Technical analysis indicates a potential correction if the price can hold above the crucial support level.
