XRP News Today: XRP Surges 2% on US-China Trade Optimism, Whales Accumulate 9.44% of Supply

XRP price experienced a 2% increase on May 7, driven by optimism surrounding potential US-China trade talks. This surge in price has led analysts to closely monitor key support levels that are crucial for the asset's sustained recovery. Currently, XRP is trading above $2.00, and analysts are highlighting several critical support levels that the asset must maintain to achieve new all-time highs.

One of the key indicators supporting the bullish outlook for XRP is the accumulation by whales. According to Santiment's Supply Distribution metric, there has been a steady increase in the supply held by entities with a balance of 1 million to 10 million tokens. These addresses now own 9.44% of the total XRP supply, marking a 1.2% increase since January 1. This suggests that whales have been accumulating XRP during price downturns, which can reduce selling pressure and create a floor for the price, encouraging smaller retail investors to follow suit.

Despite the modest 0.32% rise in XRP open interest to $3.65 billion over the last day, signaling a slight increase in trader confidence and liquidity, the 17% drop in trading volume to $3.9 billion indicates low conviction among traders. This suggests that traders are waiting for the XRP price to establish a clear directional bias before making significant moves.

Traders are optimistic that XRP can revisit its seven-year highs above $3.40 and potentially continue its gains. However, this depends on the asset holding above key support levels. Data from Cointelegraph Markets Pro and TradingView shows that XRP price bounced off the 200-day SMA at $2.08 on May 6, rising as much as 4.5% to today’s intraday high of $2.17, which is also the 50-day SMA. The 200-day SMA coincides with the election volume-weighted average price (VWAP) and the monthly rVWAP, making it a critical level to defend.

According to trader and analyst Dom, failure to hold above the 200-day SMA could see XRP drop toward $1.90. To see an immediate trend reversal, the price needs to regain $2.12. Fellow analyst Egrag Crypto believes that XRP price “should not and cannot close below $1.83.” Meanwhile, pseudonymous analyst XForceGlobal suggests that as long as XRP stays above the multimonth low at $1.60 reached on April 7, “new all-time highs look imminent.”