Tesla and SpaceX CEO Elon Musk has recently spoken about cryptocurrencies in an online town hall meeting. During this meeting, he mentioned XRP. Musk has been an advocate of Dogecoin in the past. But, this is the first time he has given his opinion on Rippleās currency. He has laid his eyes on XRP and XRP price which has elicited various responses from the crypto world.
However, he has not taken a specific position on XRP. His comments have fueled speculation on a potential appreciation in XRP price in the next few months.
At the event, Musk was asked questions about the utilization of cryptocurrencies in the aspect of financial freedom. He explained that digital currencies likeĀ XRP can be of great importanceĀ in de-centralizing the financial systems and empowering people to evade control.
– Advertisement –
Nevertheless, Musk said his comments were ānot an endorsement or a non-endorsement of XRP.ā The same has slightly dampened the spirits of the XRP community.
However, Muskās words still provoked enthusiasm among the XRP owners, especially considering his significant impact on the development of the cryptocurrency market.
In the earlier days, Muskās tweets on cryptocurrencies such as Dogecoins have been known to cause the price of these coins to skyrocket. Consequently, some XRP investors are keen on observing market movements and aiming that his concern could drive more peopleās attention to Rippleās coin even though the price of XRP has not yet been influenced directly.
Ripple Whales Continue to Influence XRP Price
Despite the hype caused by Muskās words about XRP, large investors, so-called whales, continue to actively trade the cryptocurrency. As per Whale Alert, more than 48 million XRPĀ tokens have been movedĀ to exchange wallets such as Kraken and Bitso, which is a sell signal.
The selling of XRP by whales happens at the same time as Ripple has legal battles with the U.S. Securities and Exchange Commission (SEC).
The uncertainty surrounding the legal case and large sell-offs by whales have caused fluctuations inĀ XRPās price,Ā which currently hovers around $0.54.
XRP has managed to hold within a relatively stable range in recent weeks. The potential for further sell pressure could drive the price lower. Price could dive lower more if whales decide to offload their holdings in the near future.
Technical Indicators Suggest Potential Rally
Despite the challenges, technical analysis indicates that XRP could be preparing for a price movement. Rippleās token has been consolidating around key support and resistance levels, with the 100-day moving average (MA) near $0.57 acting as a dynamic resistance point. If XRP breaks above this level, short liquidations could trigger a rally toward $0.62, according to some analysts.
In addition, an Ichimoku Cloud analysis by Dr. Pastet, a market analyst, suggests that XRP could experience a major rally by late December 2024 or early January 2025.
This analysis points to the Chikou Span and the thinning Kumo cloud, which indicate that a bullish breakout might occur if XRP continues its sideways movement into early 2025. However, this scenario depends on whether XRP maintains its current consolidation range over the next few months.
Beyond price movements,Ā on-chain dataĀ shows a resurgence in activity on the XRP Ledger (XRPL).
Recent reports indicate a spike in active wallets, with over 35,000 unique wallets recorded in a single day, the highest number seen in three months. This increased activity suggests growing adoption and utility of the XRPL, which could contribute to positive long-term prospects for the cryptocurrency.
