XRP has outperformed the broader crypto market, boosted by its underbought RSI and whale interest.
XRP
$0.58 has outperformed the broader crypto market rally in the past 24 hours hitting a three-month high, benefiting from its relatively underbought status on yearly timeframes and renewed whale interest.
Crypto market rebound boosts XRP higher
On July 17, XRP price jumped by nearly 7% to $0.618, its highest in three months, despite the sell-off fears led by the ongoing Mt. Gox reimbursement. The XRP/USD pair has climbed by around 62.20% when measured from its local low of $0.381 established on July 5.
Interestingly, the crypto market capitalization has vastly underperformed XRP’s rebound, rising by about 24.50% in the same period. In fact, XRP/USD is still down 1.71% year-to-date compared to the crypto market’s 40% returns.
This puts XRP holders in a good position to benefit from such a catch-up rally, particularly with growing interest rate cut chances in September.
Internet trends indicate growing retail interest in XRP
According to Google Trends data, XRP’s gains today are further accompanied by an uptrend in internet searches for the keyword “XRP” since June to three-month highs as of July 17.
Coupled with a rising price, this trend underscores a growing retail interest and suggests that more internet users are paying attention to XRP’s developments and market performance.
These conditions resemble XRP’s price rallies in February-March 2024 and October-November 2023, which accompanied a rise in internet searchers for the keyword “XRP,” as shown below.
Interestingly, this surge in XRP’s Google searches also accompanies a recent increase in the XRP holdings among by its retail investors, also known as “fishes,” that are holding between 100 and 1,000 tokens.
“With XRP making a resurgence this week, bullish narratives have erupted,” crypto analysis firm Santiment noted in a July 16 post on X, echoing several crypto commentators who have shared optimistic predictions about XRP on social media.
“We might be on the verge of witnessing one of the most significant breakouts in crypto history,” stated pseudonymous crypto trader Crypto Michael on X. He highlighted a bullish pennant pattern forming on XRP’s price chart over seven years, a rare occurrence where the price consolidates within a triangle pattern following a strong upward movement.
“In all my years of trading crypto, I have NEVER seen a seven-year-long bull pennant,” he added, emphasizing the potential historic nature of XRP’s current setup.
Slight increase in XRP whale holdings, as well
XRP’s gains today further coincide with a slight increase in the supply held by one of its richest investor cohorts.
Notably, since the beginning of this week, XRP supply held by entities with a balance of 100 million—1 billion tokens (teal) has increased, accompanying a drop in the supply held by the 10 million—100 million cohort (black).
Meanwhile, the supply held by addresses with over 1 billion tokens (blue) was flat. This suggests that entities in the lower cohort are accumulating XRP to move into the upper cohort, signaling growing confidence and investment among larger market players.
XRP price technicals: falling wedge breakout
Chart technicals show that XRP’s gains are part of a breakout from its prevailing falling wedge pattern.
Falling wedges are considered bullish reversal patterns characterized by two descending, converging trendlines. In a textbook scenario, they resolve when the price breaks above the upper trendline and rises by as much as the maximum distance between the upper and lower trendlines.
As of July 17, XRP had entered the breakout stage of the same pattern and is now eyeing $0.663 as the next target, its resistance level from March.
Meanwhile, XRP’s daily relative strength index (RSI) has climbed to 77.46, its most overbought reading since November 2023. This signals possible bullish exhaustion in the coming days, which may pull the price lower toward $0.571, the key support level from the February-April period.