Since plunging to its two-month low on June 22nd, Ripple’s XRP has slowly rebounded and moved within the rising parallel channel.
The price recovery marked with a constant dip appears to be driven by the trust of new investors, particularly from experienced market participants. This analysis provides details.
XRP flashes bullish signals as smart money eyes more profit
Since late June, the steady rise in XRP’s Smart Money Index (SMI) suggests that “smart money” has reentered the market and re-entered positioning for potential benefits. Measurements from this indicator show that its value has risen by 10% since June 22nd.
Smart money refers to capital managed by institutional investors or experienced traders with a deeper understanding of market trends and timing. SMI tracks the behavior of these investors by analyzing price movements during the day. Specifically, it measures sales in the morning (when retailers control it) and sales in the afternoon (when institutions are more active).
Such rising SMI indicates that smart money is accumulating assets.
In the case of XRP, the recent increase in SMI since June 22 suggests that veteran investors are quietly accumulating tokens. This could be possible in anticipation of a larger gathering as speculation around the Spot XRP ETF continues to gain momentum.
Furthermore, the parabolic stop and inverse (SAR) of XRP confirm this bullish outlook. At the time of writing, the dots that make up the indicator at XRP prices offer dynamic support for $1.99.
Asset parabolic SAR indicators identify directions and reversals of potential trends. The market is on the upward trend when that dot is placed under the asset price. It shows that the asset is witnessing bullish momentum, and if purchases continue, its prices could continue to rise.
Smart Money accumulation can cause breakouts
The press conference notes that XRP is trading at $2.21, a drop of 0.14% over the past day amid a pullback in the broader market. If purchasing activity from Smart Investors is strengthened, XPR could reverse the downtrend and rise to $2.35.
However, if the bear holds control, it can drive the XRP price to an additional $2.14. It can also push the price to under $2 more.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
