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XRP Potentially Builds up Foundation Above Important Price Level: Details

Mon, 03/20/2023 - 17:00
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Arman Shirinyan
XRP finally building up grounds for trend reversal
XRP Potentially Builds up Foundation Above Important Price Level: Details
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In a surprising turn of events, XRP has finally broken through the local resistance level that has been holding it down for the past 53 days. This new development could potentially pave the way for the digital asset to gain solid ground and move upward, provided market sentiment remains positive.

Downward price channels, such as the one XRP had been trapped in, occur when an asset's price moves within a narrowing range marked by lower highs and lower lows. This pattern tends to exert downward pressure on the asset's value, making it difficult for it to break free and enter a new growth phase. However, once the price breaks through the upper boundary of the channel, it often signals a potential trend reversal and the start of a bullish rally.

XRP chart
Source: TradingView

The fact that XRP has finally managed to break through the local resistance level is a positive indicator for its short-term price performance. This could lead to further price appreciation if overall market sentiment supports bullish momentum.

Several factors could potentially contribute to XRP's upward movement. For instance, Ripple's ongoing efforts to enhance its payment solutions and expand its global reach have been instrumental in bolstering investor confidence in the project. Additionally, positive news regarding the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) may also have a positive impact on XRP's market performance.

SHIB whales not helping

Shiba Inu (SHIB) has lately been underperforming in terms of price, despite the overall growth of its ecosystem. Interestingly, a significant 68% of the total SHIB supply is controlled by whales, raising questions about their possible impact on the token's disappointing performance.

2 Billion Shiba Inu Burned Over Past Week, Here's How SHIB Price Reacts

As the Shiba Inu ecosystem continues to expand, many have expected the meme coin's price to show a positive trend. However, the recent price performance has been lackluster, with some attributing this to the substantial percentage of the total supply being held by whales.

Whales, or large investors with substantial holdings, can influence the market by making significant trades. In the case of Shiba Inu, the massive concentration of wealth in the hands of a few individuals may be preventing the price from rising as anticipated.

One possibility is that the whales are holding onto their SHIB supply, waiting for a more opportune moment to sell or trade their tokens. This could be preventing the price from rising in the short term, as whales are not actively participating in the market. Additionally, the presence of these large investors may deter smaller traders from entering the market, fearing potential price manipulation or a sudden sell-off.

Solana finally back

Solana has been making a big comeback on the market, with the price of its native cryptocurrency, SOL, reaching $23 — a level not seen in nearly a month. This impressive resurgence occurs despite the total value locked (TVL) within a network showing signs of stagnation.

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While many other cryptocurrencies have been experiencing growth in tandem with the overall expansion of the DeFi sector, Solana's situation appears to be unique. The TVL of the network, which serves as an indicator of the adoption of DeFi applications, has been relatively stagnant. Yet, the SOL token continues to gain value, suggesting that other factors may be influencing its recent price rally.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.