The price of XRP has increased by 10% in the past 24 hours, with the Trading Volume surging nearly 50% to $8 billion. This strong upward momentum has pushed the Relative Strength Index (RSI) of XRP back into the overbought zone for the first time in nearly a month. This price increase comes after the SEC accepted XRP's ETF filing, although this does not mean it has been approved.
Meanwhile, whale activity remains sluggish, with the number of large holders seeing only slight changes after recent increases and decreases. As XRP hovers near key resistance levels, traders are closely watching to see if this price surge has enough strength to continue, or if some correction is imminent.
XRP's RSI Returns to Overbought Zone After Nearly a Month
The Relative Strength Index (RSI) of XRP has risen to 72.2, climbing from the 50 level just a day earlier.
This sharp increase indicates strong bullish momentum in the price action of XRP. For the first time in nearly a month, traders have pushed this asset into the overbought zone.
The rapid rise in RSI suggests that buying pressure on XRP has increased, signaling that demand has far outpaced supply in the short term.
XRP RSI. Source: TradingView.RSI is a momentum indicator that measures the speed and magnitude of price movements on a scale from 0 to 100.
Typically, RSI above 70 indicates that an asset is overbought and may need to correct, while RSI below 30 suggests oversold conditions, which could lead to a recovery.
With XRP currently in the overbought zone, the likelihood of a short-term correction increases as traders may start to take profits. However, if buying pressure persists and RSI remains elevated, this could signal the start of a stronger uptrend, pushing XRP to higher resistance levels.
XRP Whale Activity Remains Sluggish
The number of XRP whales - addresses holding between 1 million and 10 million XRP - increased from 2,081 to 2,136 from February 1, 2025 to February 2, 2025, indicating strong accumulation.
However, this increase was not sustained, as the number began to decline, reaching 2,118 on February 9, 2025. These fluctuations suggest that while some large holders are accumulating, others may have started to take profits or redistribute their assets.
Addresses holding between 1 million and 10 million XRP. Source: Santiment.Monitoring whale activity is important because these large holders can significantly influence price action. After the recent decline, the number of whales has started to increase again, but at a slow pace, currently at 2,127.
This indicates some new accumulation, but the relatively flat trend in recent days suggests hesitation. Without stronger buying activity, XRP may remain in an accumulation phase rather than experiencing a price increase.
XRP Price Prediction: Will XRP Recover to $3 by February?
XRP's price has increased by more than 10% in the past 24 hours, indicating strong bullish momentum. Its EMA lines suggest that a Golden Cross may soon form, often signaling an upcoming price increase.
If the uptrend continues, XRP could test the crucial resistance level at $2.96, and if it breaks through, it may push up to $3.15. A strong breakout could even drive XRP to $3.36, representing a potential 24.5% increase. This could be fueled by the SEC's potential approval of an XRP ETF, which could happen soon.
XRP Price Analysis. Source: TradingView.However, if the uptrend loses momentum, XRP's price may face a correction, testing support at $2.54.
A breakdown below this level could lead to further downside to $2.26, and if selling pressure increases, XRP could drop as low as $1.77.
