XRP Climbs 3.6% in Past Hours: 2 Key Forces Behind the Surge

The recent climb in XRP's value comes despite lingering caution stemming from Ripple co-founder Chris Larsen’s recent $200 million token transfer.

Whales Accumulate XRP, Counteracting Co-Founder's Transfer

Recent on-chain data suggests that large XRP holders, often referred to as "whales," have significantly increased their holdings, effectively offsetting any potential bearish pressure from Larsen's transfer. According to reports, these large holders purchased over $415 million in XRP within a single day, consolidating the available supply. The data indicates that 2,743 wallets now hold over 1 million XRP each, collectively locking up 47.32 billion tokens. This reduction in the liquid supply of XRP appears to have contributed to price stability amidst market volatility.

This accumulation, occurring after Larsen's transfer, is interpreted by many as a reflection of increased confidence from institutional investors and whales in XRP's long-term potential, particularly as regulatory uncertainties in the U.S. begin to ease.

Technical Indicators Suggest Bullish Momentum

From a technical analysis perspective, XRP has demonstrated resilience by maintaining its position above the key $3.10 pivot point, even after encountering resistance at the $3.28 Fibonacci level. The Relative Strength Index (RSI) is currently at 60.39, indicating a neutral-to-bullish sentiment, while the Moving Average Convergence Divergence (MACD) is approaching a bullish crossover. Analysts are closely monitoring the potential formation of a golden cross between the 9-day and 26-day moving averages, a technical signal that could potentially pave the way for a move towards $3.34 and beyond.

South Korean Market Fuels XRP Surge

Trading activity on South Korean cryptocurrency exchanges has seen a notable increase. The XRP/KRW pair on Upbit alone accounted for 14% of the platform's $3.2 billion daily trading volume. This heightened activity suggests strong retail interest and a fear of missing out (FOMO) among South Korean investors, further contributing to the upward pressure on XRP's price.

With the Altcoin Season Index showing a significant increase in the past month, XRP's performance underscores its unique position as both a beneficiary of easing regulatory concerns and a potential technical breakout candidate.