The purchases by whale and fresh DeFi yield are factors that could cause XRP price to rise towards $3.14. The coin is trading above $2.85, with traders anticipating further gains to $3.14.
The introduction of the new staking product (called mXRP) for XRP holders is one of the most interesting updates boosting the coin’s price. Those wishing to buy mXRP can deposit the Ripple-linked digital asset and gain up to 8% in annual returns.
This product is a joint effort of Midas, Interop Labs and Axelar. It is compatible with other DeFi platforms and makes trading or lending simpler for all users.
According to the co-founder of Axelar, Georgios Vlachos, this product launch represents a huge turning point for XRP. The platform enables multiple use cases as it connects the XRP Ledger (XRPL) with DeFi.
Midas CEO Dennis Dinkelmeyer said that a portion of the coin’s supply has not been used over the years. Hence, mXRP is an efficient method to turn that portion into productive resources. Right now, this product can only be accessed in Europe and Asia. Further expansion into other regions will depend on obtaining regulatory approvals.
Also Read | XRP Trading Volume Jumps 218% as Bulls Target $3.60 Recovery
On-chain analysis by chartist Ali reveals whale purchases. These large volumes bought in recent days imply a renewed confidence in this coin.
These purchase actions have aided the coin’s price as it is stabilizing above $2.80. It may also indicate that whales are expecting the coin’s price to make the rise towards $3.14.
Historically, the price direction for the coin has been based on the behavior of whales. Large inflows into whale wallets often happen before strong price breakouts.
Source: X
GemXBT reported that the relative strength index is on an upward move since it was on neutral in the past days. This means that buyers are beginning to be dominant again after largely trading within the same range for weeks.
Meanwhile, the moving average convergence divergence signal became bullish. Usually, this is an indication of a possible trend reversal. These developments point to an increasing demand that is high enough to cause a rise in the coin’s price.
Source: X
The coin has pivoted off the $2.79 support level. Being above this zone is an assurance to traders the coin is eyeing higher price targets.
The other interest zones are $3.05 and $3.14. When its price exceeds them, it might end up as high as $3.42. This is verified by volume weighted average price and indicates that the $2.85 VWAP price is a key support level.
This level indicates that buyers are ensuring that the price does not drop below this level. If the coin does not fall under the VWAP and Fibonacci level, the upward trend will continue to gain momentum.
Source: TradingView
This digital asset is entering a new stage where old price forces are strengthened by new DeFi projects. Also, the demand by whales is proof of strong interest and the technicals are predicting bullishness. The combination of these factors and other fresh ones could push the coin’s price to $3.14.
Also Read | XRP Surges as Whales Buy 30 Million XRP and Price Eyes Breakout
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