In a move reminiscent of Dogecoin’s recent rally, the value of the XRP token rose more than 100% in just 48 hours.
After starting the day at $ 0.29 on January 30, data shows that the token peaked at just over $ 0.67. XRP is trading around the $ 0.66 at the time of writing.
XRP rose 56% on Saturday, hitting prices above $ 0.50 as a coordinated buying plan took shape. The aggressive selling that followed recorded XRP’s $ 0.44 daily closing. The bulls, however, returned with a 12% increase on January 31 to reclaim the $ 0.50 level. In the past 24 hours, XRP has climbed about 47% to break above the $ 0.60 resistance.
A group on Telegram called Buy & Hold XRP is probably the reason behind the pump and we can see that the XRP price goes higher. This XRP retail trade army has followed in the footsteps of WallStreetBets. At the time of writing, the Telegram group has 200,000 members.
If retail buyers repeat what Dogecoin (DOGE) experienced last week, XRP could surpass the $ 0.75 level with the big rise. Cryptocurrency DOGE gained more than 1000% 24 hours after a WallStreetBets-style pump. The uptrend is probably not over yet, as the joke token has gained 45% in value in the last 24 hours and traded around $ 0.04.
What this clearly suggests is that any cryptocurrency with a strong army of followers can be manipulated fairly easily in an extremely short period of time, and any buyer considering engaging in combat should be wary of excessive manipulation, especially if they are not aware of it.
However, some observers say Telegram investors cannot be the only drivers of the price increase. On Sunday, XRP’s 24-hour volume exceeded $ 26 billion. Even if each group member drops $ 5,000 in XRP, that equates to 2% of the total daily volume. At this point, the popular analyst Credible Crypto said in his post on Sunday, “Let’s be logical here, no Telegram group can pump the 5th largest cryptocurrency in space.”
XRP is trading higher after moving above a decreasing trend line on the daily chart. If the bulls break the resistance at $ 0.66 as shown in the graph below, a potential technical breakout to $ 1.00 will be strengthened.
However, in the short term, a correction may be as sharp as the increase seen in the last three days. In this case, the bears will try to push prices to the 0.618 Fibonacci level ($ 0.56) and then to the 0.5 Fibonacci retracement level ($ 0.48). Further losses below the Fib levels above could indicate that the bears are targeting the 50-SMA ($ 0.33) and 200-SMA ($ 0.31).
Alex Melikhov, founder of the EOSDT stablecoin, told CoinDesk that the next target for XRP is $ 0.80. As Melikhov points out, there is no resistance level between $ 0.80 and $ 1.00. A convincing move above a dollar level could shift the focus to highs of over $ 3.00 reached in December 2017.