Most altcoins, including Ripple (XRP), look strong and have not followed Bitcoin (BTC) in its recent crash. XRP price action also looks good on the daily chart, hinting at a reversal amid rising whale activity and positive skew. Moreover, many analysts expect Bitcoin to pause its crash over the weekend and potentially recover, adding credence to a Ripple (XRP) price rally that could hit $3 over the weekend.
XRP Price Recovers as Bitcoin Selloff Pauses
The selloff that weighed on Bitcoin’s price this week has cooled. BTC is back above $85,000, and most altcoins are trading in the green today. The global crypto market cap has also surged by more than 7% within 24 hours, hitting $2.93 trillion in market capitalization.
Crypto markets are historically more volatile on weekends due to lower liquidity. This can cause wild swings in either direction. Therefore, as traders bought the dip, it triggered a recovery for Bitcoin and altcoins.
These market-wide gains have boded well for XRP price, which trades at $2.20 today with a 9% gain in 24 hours. Derivatives trading data and whale activity suggest that XRP price may extend this rally and potentially recover past $3.
XRP Derivatives Trading Data Shows a Positive Skew
The XRP order book shows that Ripple has flashed a bullish signal as traders place more bids (buy orders) than asks (sell orders). Moreover, there is a significant bid skew that is within 50% of XRP’s current price, suggesting traders are willing to buy at higher prices.
This imbalance shows that demand for XRP is currently high, making it more likely for the price to rise rather than fall. According to analyst DOM on X, this bid skew has only happened 4 times over the past year. Each time it has happened, the XRP price registered a strong rally.
If Ripple price were to repeat this historical pattern and the bid skew proves to be another bullish signal, it could stir a rally towards $3 over the weekend.
Ripple Whale Activity Flashes a Buy Signal
Whale activity is crucial in determining accumulation and distribution phases and after the recent drop in XRP price, the altcoin may have entered another accumulation phase.
Looking at past trends, a sharp drop in XRP price has often signaled a buying opportunity for whales. At the same time, a price rally has led to XRP whales selling. If this pattern repeats itself, these large addresses may start buying the bottom, which is likely to drive the price up.
However, if Ripple price continues to show weakness, whales may remain hesitant until the altcoin establishes a local bottom where these large addresses will start buying.
Can XRP Price Reach $3?
XRP can continue to rally and reach $3 if Bitcoin continues to recover and averts another selloff. Additionally, other catalysts like an end to the SEC vs. Ripple case could stir a 300% gain for XRP price in March.
Analyst CRYPTOWZRD notes that XRP price has established support at $2. After bouncing from this level, traders can expect more upside past $2.80 to the next major target of $3.65.
However, Ripple price is likely to continue tracking Bitcoin in the near term. Therefore, until Bitcoin establishes a strong support level within the $80K – $90K zone, XRP may continue experiencing wild swings.
The post Can Positive Skew, Whale Activity Push XRP Price to $3 as Bitcoin Selloff Pauses Over the Weekend? appeared first on CoinGape.
