Why is XRP price up today?
The price of XRP (XRP) is up today, rising over 2% in the last 24 hours to reach $0.525. In doing so, the cryptocurrency is now up around 25% from its local low of $0.423, established a month ago.
Primary catalysts driving the XRP price upward today include a broader recovery sentiment across the crypto market and whale accumulation.
U.S. inflation report sends cryptos like XRP flying
XRP’s gains today are part of a rebound that started after the U.S. Consumer Price Index (CPI) reported a cooling inflation on May 15.
Core inflation in the U.S. rose 0.3% to 3.6% in March, the lowest reading excluding food and energy since April 2021. In response, bond traders increased their bets on the year’s first interest rate cut to September from November, according to CME data.
XRP’s price has increased 5% since the CPI release, indicating the prospects of rate cuts have boosted investors‘ appetite for crypto assets.
XRP whales buy $55 million worth of tokens
XRP price gains today further coincides with signs of accumulation among its richest investors, also known as „whales.“
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According to data resource platform Santiment, entities with a 1 million-10 million XRP balance have increased their token holdings by 110 million (worth around $55 million) in the last two weeks, as shown in the chart shared by analyst Ali Martinez below.
During this time, XRP’s price has risen by approximately 10%, indicating strong whale support behind the rally.
Giant symmetrical triangle pattern
From a technical perspective, XRP’s gains are part of a rebound that started after testing the lower trendline of its multi-year descending triangle pattern.
As of May 18, XRP price was eyeing a close below its 200-week (blue) and 50-week (red) exponential moving averages (EMAs) at around $0.525 and $0.550. Doing so could have the cryptocurrency test the triangle’s upper trendline at around $0.585 as the next upside target.
The 0.585-target has served as support during the May-June 2021 and January 2022 sessions.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
