XRP Rally Possible, But Whale Selling May Limit Gains
Key Takeaways
- XRP shows signs of a potential price increase but is being held back by sales from large investors (whales).
- A symmetrical triangle pattern on the weekly chart suggests a potential rally.
- Retail investors are showing confidence in XRP, supported by positive funding rates and rising open interest.
- However, whale sales could push the price down, leading to a decline.
Symmetrical Triangle Pattern Points to Rally
XRP is currently in a symmetrical triangle pattern, which is often interpreted as a bullish signal. This pattern suggests that an upward market movement may be imminent, as selling pressure decreases. Another positive sign is the Chaikin Money Flow (CMF), which indicates that XRP is being accumulated, a further indication of a potential rally.
Retail Investors Support the Uptrend
Retail investors play a central role in XRP’s current market dynamics. Data from Coinglass shows that the funding rate is positive. This means that traders in long positions are paying a fee to those in short positions, indicating that the demand for long positions is higher than for short positions. Additionally, open interest, or the number of open futures contracts, has increased by 1.15%. This shows that more traders are betting on an XRP price increase.
Whale Sales Hold Back Price
Despite the positive signals from retail investors, there are signs that large investors, also known as whales, are reducing their XRP holdings. According to data from Lookonchain, several whales have transferred large amounts of XRP from private wallets to exchanges. This often indicates that sales are imminent, as investors move their holdings to exchanges to sell them. Two notable transactions include the transfer of 28,000,000 XRP (worth approximately 14.99 million USD) to the Bitso exchange and 18,820,000 XRP (worth approximately 10.11 million USD) to Bitstamp.
Risk of Price Decline
If these whale sales continue, the XRP price could fall back to the support level of the symmetrical triangle. This level has seen strong buying pressure in the past. However, if this support line is broken, it could lead to a further price decline.
Our Assessment
XRP is currently showing mixed signals. On one hand, there are signs of a potential rally, supported by a bullish chart pattern and the confidence of retail investors. On the other hand, whale sales could push the price further down. It remains to be seen whether the support line of the symmetrical triangle will hold or if the selling pressure will prevail.
You should read that too:
-
International Online Casinos for Canadians 2024
Reading time: ~ 3 minutes
-
Online Casino Games – Crypto or Real Money Games
Reading time: ~ 3 minutes
-
Swintt Online Casinos
Reading time: ~ 3 minutes
-
Yggdrasil Gaming Online Casinos
Reading time: ~ 3 minutes
-
Tom Horn Gaming Casinos
Reading time: ~ 3 minutes
Sources:
– Lookonchain
– Coinglass
– TradingView
Symbol | XRP |
Coin type | Alt Coin |
Transaction Speed | High |
Pros |
|
Cons |
|
Price | $0.53 |
24h % | -8.16 % |
7d % | -11.42 % |
30d % | -6.69 % |
60d % | -1.38 % |
1y % | 2.27 % |
Official Links | Website |
Socials | X |