- Ripple price has been contained within a wedge pattern on the hourly chart.
- The breakout of the pattern is significant as XRP is facing very weak resistance above the $0.75 level.
- XRP price action is so volatile and difficult to predict, investors should be cautious.
On January 30, XRP had a massive pump that pushed the digital asset by 85% thanks to WallStreetBets and other Pump and Dump groups via Telegram that coordinated the payment for the digital asset.
From a low of $0.278 on January 30 to a high of $0.755 on February 1, the pump lasted less than three days as the price of XRP quickly dropped to $0.35.
Ripple price sees the light at the end of the tunnel
On the hourly chart, XRP formed a rising wedge formation and traded within a narrow range. Ripple price finally made a clear breakout with a price target of $0.44. However, the most important bullish factor is the lack of resistance above this point.
XRP/USD 1-hour chart
It also appears that the number of whales holding at least 10,000,000 XRP has exploded by 16 in the past five days despite the XRP price explosion. This metric shows that major owners are once again interested in a digital asset despite a lawsuit filed against SEC Ripple.
XRP holders distribution chart
However, it is important to note that the price of XRP is very volatile now after the initial pumping and deflation and could drop sharply at any time.
XRP Social Volume
XRP social volume is up again compared to the last 48 hours which indicates more volatility is underway and another sharp drop is likely as it did the last four times after volume spikes. XRP price could easily fall towards the psychological level of $0.30 again.