The price of XRP saw a major rally on August 26, hinting at a possible effect from some big traders.
Large XRP Transfers, Global Ripple Swell Event
Notably, the price of XRP jumped 6% to $0.37, a two-week high, during early London hours. The token’s bullish move came hours after its network processed three massive transfers worth $51 million involving cryptocurrency exchanges Bitso and FTX, as highlighted by Whale Alert.
XRP’s gains also came as part of a broader bullish move that began on August 25, a day after Ripple will announce its flagship event, “Ripple Swell Global”, to be held in London in November 2022. The market has seen similar reactions to the Swell event in the past.
Bearish reversal setup in play
XRP’s intraday spike left a “Graveyard Doji”, a bearish reversal candle with open, close and low prices close to each other with a long upper wick. This candle suggests that the price rally witnessed at the beginning of the session was overtaken by the bears at the end of the session.
XRP is now trading almost 4% below its intraday high, testing a confluence of support. The confluence comprises the upper trend line of XRP’s previous “rising triangle” (at $0.35) and the 50-4H exponential moving average (50-4H EMA; the red wave in the chart above) near $0.343.
From a technical point of view, if it breaks below the confluence of supports, it risks re-triggering the ascending triangle setup, with its profit target around $0.33. In other words, a 7% price decline for September, measured from the price on August 26.
Conversely, a bounce after testing the confluence of support could see XRP eye a recovery rally into the $0.36-$0.38 range (marked in red on the chart above). This zone served as XRP’s consolidation range in recent months.
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