After XRP from Ripple plummeted to a two-month low on June 22nd, it is slowly rebounding and moving within an ascending parallel channel.
The price recovery appears to be driven by investor confidence restoration, particularly among experienced market participants, despite continuous decline. This analysis provides the details.
XRP Shows Strength Signal... Smart Money Additional Profit Attracts Attention
Since late June, the steady rise of XRP's Smart Money Index (SMI) suggests that 'smart money' is re-entering the market and positioning itself for potential increase. The indicator's value has increased by 10% since June 22nd.
Smart money refers to capital controlled by institutional investors or experienced traders who deeply understand market trends and timing. SMI analyzes these investors' behavior to track intraday price movements, particularly measuring morning selling dominated by retail traders and afternoon buying more active among institutions.
Such an SMI rise indicates that smart money is accumulating assets, which often occurs before major price movements.
For XRP, the recent SMI increase since June 22nd suggests experienced investors are quietly accumulating tokens. This comes amid continuing momentum for speculation about spot XRP ETF, potentially anticipating a larger rally.
Additionally, XRP's Parabolic SAR confirms this upward outlook. At the time of writing, the points comprising the indicator are positioned below XRP's price, providing dynamic support at $1.99.
The asset's Parabolic SAR indicator identifies potential trend direction and reversals. When points are located below the asset's price, the market is in an upward trend. This indicates the asset is experiencing upward momentum, and continued buying could lead to further price increases.
Increase in Smart Money Inflow... Can It Break Resistance?
At the time of reporting, XRP is trading at $2.21, declining 0.14% over the past day amid overall market adjustment. If smart investors' buying activity intensifies, XRP could reverse its decline and rise to $2.35.
However, if bears maintain control, they could drive XRP price down to $2.14 and potentially push it further below $2.
