The XRP price might be approaching an inflection point, as its daily chart suggests.
The XRP price has seen profit-taking since attaining highs of $0.854 on July 19. This saw the XRP price decline to a demand region, especially around $0.67, where it saw a rebound on July 25. Notably, the XRP price initiated a rise from near this region on July 14.
At the time of writing, XRP was up 1.87% in the last 24 hours to $0.6987, per CoinMarketCap data. While where XRP heads next remains an open question, indications seem to be pointing upward, buoyed by positive fundamentals.
Santiment, an on-chain analytics firm, pointed out at the start of the week that XRP had the most 100 million XRP whale wallets in over 11 weeks as its price surpassed $0.70.
According to Santiment, the number of XRP whale wallets holding over 100 million coins, or at least $74 million, has grown to 199, marking the highest number since May 13. Notably, XRP has been a top trending subject this month, with a moderate price correlation with changes in social dominance.
On the positive side as well, CoinShares' head of research James Butterfill reported on July 24 that XRP investment products witnessed a combined inflow of $9.2 million over the past week. This is significant as BTC investment products witnessed $13 million in outflows, reversing five weeks of inflows.
Here are possible scenarios
A plausible scenario would be for XRP to maintain its recovery and retest the $0.85 level. With a decisive close over $0.85, XRP might retest the $1 barrier level and gain roughly 30% from current levels.
Another possibility is range trading, with XRP forming a range in the near term. The range's boundaries may be $0.66 on the downside and $0.86 on the upside. The first indicator of strength in this situation will be a break and close over the overhead barrier of $0.85.
XRP, on the other hand, may fall further if the $0.66 support level is breached. This might lead to more selling, and XRP could approach the MA 50 support at $0.56.