In recent days, XRP has experienced sharp price fluctuations, reflecting the influence of trading practices and institutional investments.
Impact of South Korean Purchases on XRP
The digital currency XRP experienced a notable decline of 4.3% between August 28 and 29, dropping from $3.02 to $2.89 within a 24-hour span. Despite the bearish sentiment, the trading volume exceeded the average figures, shedding light on significant buying activity. South Korean investors played a pivotal role by withdrawing 16 million XRP tokens from exchanges, relocating them to personal wallets, which helped maintain the price above crucial support levels.
On-chain data revealed the withdrawal of 16 million XRP tokens, worth approximately $45.5 million, from South Korean exchanges within 24 hours. These withdrawals signify regional institutional demand that offsets individual selling pressures.
Technical Indicators Enhance Recovery Outlook
XRP’s price, which briefly plummeted to $2.77 on August 28, quickly rebounded due to strong buying momentum. The 24-hour trading volume soared to 96.19 million coins, doubling the average volume. The $2.85–$2.86 range emerged as a short-term critical support/resistance zone for the altcoin.
Technical indicators suggest a strong recovery likelihood. The Relative Strength Index (RSI) increased from 42 to above 50, exiting the oversold territory. The narrowing histogram in the MACD indicator suggests a bullish crossover might be imminent if buyers maintain the pressure.
Conclusion and the Future of XRP
Some analysts have identified formations like the symmetric triangle and double bottom converging with a broader cup-and-handle formation. Should the cup-and-handle pattern play out, medium-term targets ranging from $5 to $13 could resurface. Nonetheless, the risk of a decline below $2.77, down to $2.70, must not be overlooked.
Thus, the dynamics of the XRP market continue to be influenced by various factors, including the activity of major investors and technical adjustments. Investors should closely monitor key support and resistance levels.
