After a bumpy month of October, XRP is back on the radar. The cryptocurrency recovered very quickly after a major dip and managed to surprise investors again. One striking development in particular is keeping the market busy: a mysterious mega purchase of more than $1 billion in XRP.
Is the currency now on the verge of a new breakout?
XRP recovers strongly after brisk dip
On October 11, XRP suffered another big blow: the price plunged to a low of $ 1.25. But the malaise did not last long. In the weeks that followed, the currency made an impressive recovery. At the time of writing, the price is already above $2.60 – more than doubling in a short time.
An important driver of this recovery appears to be a high-profile transaction of institutional size. Evernorth, a party that according to several reports has close ties to Ripple, acquired approximately $1 billion worth of XRP, according to data from CryptoQuant. This would involve more than 388 million tokens.
What is especially striking: the majority of those tokens have been moved to cold storage. This means that they are stored outside of exchanges and are therefore not available for sale for the time being. It points to a long-term view – not a quick trade.
On-chain data also confirms that story. Glassnode reported that XRP’s net position on exchanges fell by nearly 2.8 million tokens on October 19 and 20. That is the largest outflow ever measured for XRP. And fewer coins on exchanges usually means: less selling pressure and room for a further price increase.
Technical signals are pointing up
Not only does the news about the major purchase raise hopes, the graphs also give reason for optimism. According to analysts, XRP appears to be following the same path as earlier this year, when the coin rose above $3. A similar pattern formed in April and June, resulting in a peak of $3.66.
The next big test is around $2.77. If XRP manages to break through that level, a new run towards $3 could easily be initiated. That would mean an increase of five to fifteen percent.
Impending short squeeze could cause fireworks
There is something else going on that could further fuel the price: many traders are now betting on a decline. Around $2.68, there are about $40 million worth of short positions ready, according to CoinGlass. These are bets on a lower price.
But if XRP does rise further, those short traders will have to close their positions quickly to avoid bigger losses. And that means: buy. This sudden buying pressure is called a short squeeze – and it can push the price up even faster.
Will November be the month of XRP?
The coin is at a crossroads. On the one hand, there is optimism about institutional interest, strong technical signals and declining supply. On the other hand, it remains crypto – nothing is certain.
But one thing is clear: if XRP manages to break through the current resistance, the path to $3 will be open again.
Source: https://newsbit.nl/hoe-hoog-kan-de-xrp-koers-stijgen-in-november/
