The cryptocurrency market has been going through a period of volatility, but XRP could be about to break through. As investors and traders gear up for the upcoming potential profits, several key metrics to watch out for can provide insight into the future of XRP price.
XRP could be poised for a rally
Over the past week, XRP has shown signs of bullish momentum, with the price of cryptocurrency rising from $0.46 on April 21 to $0.47 at the time of writing. The price increase can be attributed to several factors, including the ubiquity upward trend in the market.
According to the 4-hour XRP price chart, a possible uptrend could emerge soon. The asset has formed a double bottom on the 1 day time frame and is now set to fully form a W pattern.
The token has a large high liquidity of $0.53 which could support an extension of the bullish trend as major players target it. While the chart appears inaccurate, if the asset continued its upward momentum and did not invalidate the marked W pattern, it could rally and trade in the $0.5 region in the coming weeks.
Key stats to watch
In addition to the asset validating the W pattern on the chart, XRP trading volume is one of the crucial metrics to pay attention to as it indicates the level of interest among retail traders.
These retail investors have the potential to amplify the current bullish price action for XRP. According to facts from CoinMarketCap, the token’s daily trading volume has remained consistently high, indicating strong investor interest and possibly a harbinger of a price rally. the token’s daily trading volume has increased from $1.4 billion 5 days ago to $1.6 billion in the last 24 hours.
Whale action on XRPs is another important metric to watch out for. There have been significant whale transactions on the XRPL network registered via on-chain datawhich can potentially affect the price of the XRP coin in favor of further gains.
Whale trades refer to large cryptocurrency transactions, usually conducted by institutional investors or high net worth individuals. These transactions can move markets and are closely monitored by traders and investors alike.
Factors contributing to XRP’s potential rally include regulation and the legal battle against the US Securities and Exchange Commission (SEC). As the XRP case continues, any positive regulatory news could driving up demand for the cryptocurrency.
Featured image from iStock, chart from TradingView
