XRP’s Price Surges Following Bitcoin Halving: Here’s Why
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In the aftermath of Bitcoin’s fourth halving event, the cryptocurrency market witnessed a notable surge in XRP prices. XRP recorded a 5.55% jump in price, reaching an intraday high of $0.526. This surge came amidst a broader crypto market downturn, with BTC leading a 1.07% decline in total market capitalization per Coinmarketcap data.
Market Sentiment Shifts
Multiple factors outlined in recent market analyses have contributed to XRP’s outperformance today. The phenomenon of “sell-the-news” surrounding Bitcoin’s halving has played a significant role.
This trend often occurs as traders and investors capitalize on pre-event speculation, only to cash out gains once the event concludes. As BTC’s price experienced a post-halving dip, there were more XRP purchases, a feat that hasn’t happened since the 2024 price rally in crypto.
XRP’s price action indicates a year-to-date return of -15% compared to the market’s +35%. However, investors view the current lower prices as an attractive investment opportunity and anticipation of a potential rebound and alignment with broader market performance further fuel interest in XRP.
Number of Large XRP Holders Increases
Moreover, substantial whale buying activity has coincided with XRP’s price increase. On-chain data indicates a significant rise in whales holding substantial XRP positions and smaller retail investors.
Whales holding at least 100K and up to 1 million XRP tokens increased significantly in the days leading up to the halving event in April. Similarly, smaller investors (known as “fishes”) increased their holdings, with the surge observed among entities holding at least 10,000 and 1,000 XRP tokens.
This accumulation pattern often indicates anticipation of positive market developments or price movements as retail and institutional investors strategically position themselves to capitalize on expected shifts in market dynamics. CoinShares’ weekly report corroborates this sentiment, highlighting XRP funds as among the few to witness capital inflows in the week ending April 12. In contrast, BTC and ETH saw negative net flows during the same period, underscoring the growing appeal of XRP among investors.
XRP’s Price Rebound
Additionally, XRP’s price surge today is consistent with an oversold bounce. Following a notable price drop of 30% on April 13, XRP entered oversold territory per technical indicators, triggering a rebound as its daily Relative Strength Index (RSI) fell below 30.
This trend often precedes a period of rebound or consolidation, contributing to the 24.25% bounce from its April 13 bottom, including today’s gains. Investors will watch XRP’s price closely as the Ripple vs. SEC case awaits Judge Torre’s imminent ruling.
Ripple plans to release a public, edited version of its opposition brief on April 24. Ripple’s legal team will contest the SEC’s demand for $2 billion in fines. The convergence of these factors paints a bullish picture for XRP amidst broader market volatility. While Bitcoin’s halving fallout triggered market-wide fluctuations, XRP attracted investor attention with its undervaluation and potential for growth.
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