Why is XRP price up today?

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The price of XRP (XRP) is up today, outperforming the broader crypto market a day after the conclusion of Bitcoin’s (BTC) fourth halving.

XRP price jumped 5.55% to reach an intraday high of $0.526 on April 20. In comparison, the crypto market’s total capitalization was down 0.16%, led by BTC’s 0.5% price decline.

XRP/USD vs. TOTAL crypto market and BTCUSD daily performance chart. Source: X

XRP’s outperformance versus the rest of the crypto market today can be attributed to several factors.

Bitcoin “sell-the-news” sentiment

Bitcoin’s “sell-the-news” reaction after the halving event is benefiting XRP. The phenomenon of “sell-the-news” typically occurs when an asset’s price increases in the lead-up to an anticipated event due to speculations but then declines after the event happens, as traders and investors cash out their gains.

This pattern typically results in a redistribution of capital within the crypto market, which is the case with XRP today. Given that XRP has lagged behind the market during the 2024 price rally, traders are more interested in buying XRP.

As of April 20, its year-to-date (YTD) returns were at -15%. On the other hand, the crypto market’s returns in the same period were +35%, led by Bitcoin’s 44.45% growth.

XRP/USD vs. TOTAL crypto market cap and BTC/USD year-to-date returns. Source: TradingView

As a result, some investors may view XRP’s current lower prices as an appealing investment opportunity. These investors might anticipate that XRP, currently underperforming, could potentially rebound and align with or even surpass the broader market’s performance in the future.

XRP whale count rises

Today, XRP’s price increase coincides with a significant buying activity from large investors, often called “whales.”

For instance, the number of whales holding at least 1 million and 100,000 XRP tokens increased substantially in April — right in the days leading up to the halving. The trend is similar among small investors, or fishes, with the number of entities holding at least 10,000 and 1,000 XRP tokens also rising. 

XRP addresses with a balance greater than 1 million, 100,000, 10,000 and 1,000 tokens. Source: Messari

Typically, such accumulations can signal anticipation of favorable developments or price movements as both retail and institutional investors position themselves to benefit from expected market dynamics.

Related: Why XRP price might jump 70% vs. BTC after the Bitcoin halving

For instance, according to CoinShares’ weekly report, XRP funds were among the only ones to witness capital inflows in the week ending April 12. In contrast, Bitcoin’s and Ethereum’s weekly net flows were negative, as shown below.

Flow by crypto assets. Source: 

Oversold XRP price bounce

From a technical perspective, as well, XRP’s gains today are part of an oversold bounce.

On April 13, XRP experienced a significant price drop of 30%. On the same day, its daily Relative Strength Index (RSI) fell below 30, an oversold area that typically precedes a period of rebound or consolidation.

XRP/USD daily price chart. Source: TradingView

Due to this technical rule, XRP’s price has bounced 24.25% from its April 13 bottom, including today’s gains.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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