XRP Eyes Recovery Amidst Accumulation and Market Shifts

Accumulation Signals Rebound

Ripple's XRP is rebounding since there is investor accumulation, which is indicated by an uptrend in the Mean Coin Age measurement. This metric tracks the average number of days XRP tokens remain in their current addresses; an uptrend signifies accumulation on a network level2. It implies long-term investors are choosing to hold rather than sell when prices are declining, which supports prices and offers price rebound potential.

Decreasing Speculative Interest:

On February 10th, open interest had decreased by 4.38% to $3.51 billion, indicating a reduction in speculative positions6. Open interest on all exchanges declined by 44% during February, from $6.35 billion on February 1 to $3.55 billion8. The futures open interest has decreased by 37% since January 15247. The fall followed a 25.7% correction for the week ending February 6.

Trading Range and Technical Indicators

XRP whale investors were optimistic about the crypto market, buying 520 million XRP during a period of price volatility4. Whale accounts holding between 10 million and 1 billion XRP acquired more than 120 million coins during a period of downturn, increasing their total holdings to 10.41 billion XRP

XRPUSD trading in a narrow range between $2.79 and $2.26 for the past week.  It hit an all-time high of $3.40 and is currently trading around $2.43. A daily close below $1.60 could signal a further minor bearish trend. XRP remains below above both short-term (34 EMA and 55 EMA) and above long-term moving averages (200-day EMA) on the 4-hour chart confirming a mixed trend.

Resistance and Support Analysis
The immediate resistance level for XRP is around $2.80, and a breakout above this level will push prices higher to $3/$3.40/$4. Any breach above $4 confirms further bullishness, a jump to $5. On the downside, immediate support lies at $2 any break below targets  $1.60, $1.27, $1.00, $0.85, and $0.74.

CCI(50)- Neutral

Directional Movement Index - Bearish

Trading Strategy Recommendation

It is good to buy on dips around $2 with SL around $1.60 with SL around $4.