XRP price rises 5.55% as investors shift focus from Bitcoin following its halving, attracted by its undervalued status.
In today’s cryptocurrency market, Ripple’s XRP stands out with a notable price increase, rising 5.55% to hit a high of $0.526. This surge occurs just a day after Bitcoin completed its fourth halving event, which saw its price dip by 0.5% to $64,655. Despite the overall market capitalization of cryptocurrencies experiencing a slight decrease of 0.16%, XRP’s gains highlight its resilience and appeal to investors during a period of general market downturn.
The phenomenon of “sell-the-news,” often observed in assets that spike in anticipation of major events only to fall afterward, has impacted Bitcoin following its halving. Investors and traders usually sell their holdings to capitalize on the pre-event price rise, leading to a post-event drop. This cycle has inadvertently benefited XRP, considered undervalued by many, as capital begins to redistribute within the market. Unlike Bitcoin’s robust 44.45% growth this year, XRP had a challenging start with a year-to-date return of -15%, contrasting with the overall crypto market’s gain of 35%. This disparity has made XRP an attractive option for investors looking for potential growth.
Interest from Investors
Accompanying the price surge in XRP is an increase in buying activities from large-scale investors, or whales. Data indicates a significant rise in the number of whales holding at least 1 million XRP tokens, and similarly, those holding at least 100,000 tokens have also spiked in April. This trend is echoed among smaller investors, with those holding at least 10,000 and 1,000 XRP tokens showing increased numbers. Such accumulative moves often suggest a positive market sentiment and an anticipation of favorable price actions.
Further strengthening the appeal of XRP is its recent performance in investment funds. According to a recent report by CoinShares, XRP funds were among the few to register capital inflows in the week ending April 12, in stark contrast to Bitcoin and Ethereum, which saw net outflows.
From a technical analysis standpoint, XRP’s recent gains are also part of a recovery from being oversold. Following a sharp 30% drop in price on April 13, the Relative Strength Index (RSI) for XRP dipped below 30, indicating an oversold condition that often precedes a price rebound. Since hitting that low, XRP has rallied 24.25%, including today’s upward movement.