XRP rose 6% as bitcoin neared the $67,000 mark on Wednesday morning in the United States, with data from one exchange showing spot buyers outpacing sellers by more than 200%.
News context
- Bitrue, a long-time XRP supporter and exchange, told CoinDesk that he observed a large increase in XRP spot activity between February 23 and 24, with retail purchase volumes increasing by 212% and outpacing sell orders by more than two to one.
- This spike coincides with what some traders describe as a quiet accumulation phase following recent volatility.
- The institutional positioning also seems constructive. Since its launch in mid-November, XRP exchange-traded funds have attracted approximately $1.1 billion in net assets, posting positive weekly inflows with only limited outflow days.
- This contrasts with Bitcoin ETFs, which are down year-to-date, suggesting a potential turnover of capital within crypto allocations rather than a widespread outflow.
- Spot traders also realized nearly $1.93 billion in losses during the mid-February pullback, Bitrue said, a shake-up that historically preceded stronger rallies once speculative leverage dissipated.
Price Action Summary
- XRP rose from $1.34 to $1.42, gaining around 6%
- A break above $1.37 triggered an increase in volume to 259 million, more than double the daily average.
- Price consolidated near $1.42 after testing $1.43
Technical analysis
- The decisive move came with the sustained break above the $1.37 resistance. Expanding volume confirmed participation beyond limited liquidity conditions, with prices forming higher lows throughout the session.
- The short-term structure remains constructive as XRP holds above $1.40. However, a general bid near $1.45 remains a key test.
- Failure to maintain current levels would bring attention back to the $1.37 breakout zone as first support.
What do traders think is next?
- Traders are looking to see if the $1.40 to $1.42 area can serve as a new base. A push above $1.45 would open room towards $1.50 and potentially $1.57.
- If the momentum fades and XRP falls back below $1.37, the breakout risks turning into a false move, reopening the previous consolidation range.
- For now, high volume combined with significant spot buying suggests positioning is improving – but confirmation depends on tracking above resistance.
