- XRP whales move $28 million from Binance, hinting at potential long-term holding.
- XRP price encounters resistance at $0.5053, struggles despite high trading volume.
- Options open interest rises by 15.02%, contrasting with a 46.56% drop in trading volume.
In a sudden turn of events, bearish momentum took control of the XRP market after an initial bullish rally failed to break through resistance at $0.5053. Significant XRP transactions, including large outflows from crypto exchanges to unknown wallets, have raised questions about potential market moves and investor sentiment.
XRP/USD 24-hour price chart (source: CoinMarketCap)
According to Whale Alert, an on-chain tracking platform, three major transactions withdrew large amounts of XRP, totaling approximately $86 million. The first transaction involved 30,406,274 XRP valued at $15,073,991, while the second saw 26,440,906 XRP worth $13,173,790 being moved.
Concurrently, substantial sums have been moved from other exchanges to unknown wallets, with a transfer of 29,885,000 XRP ($14,833,185) from an unknown wallet to the Bitstamp exchange.
Market analysts typically view these transfers as a signal that big players are opting to hold their assets off exchanges. This could be interpreted as a bullish sign, suggesting a sentiment of long-term confidence among investors.
XRP Market Reaction and Price Trends
Following these transactions, the XRP price experienced a temporary uplift, touching a high near the $0.505 mark. However, the gains were short-lived as the price encountered strong resistance and fell back. At press time, XRP exchanged hands at $0.4858, a 2.07% decline from the intra-day high. Moreover, the XRP’s market capitalization declined by 2.37% to $26,943,904,532.
Despite the increased trading volume, which surged by 213.92% in the last 24 hours, the price has struggled to maintain its upward trajectory.
XRP Derivatives Data (Source: Coinglass)
Open interest in XRP, however, has only increased by 0.31% to $530.26 million. This discrepancy between trading volume and open interest may suggest short-term trading strategies rather than establishing new positions.
A 46.56% decline in options volume, concurrently, was recorded in the derivatives market, contrasting with a 15.02% rise in options open interest. This trend, as a result, suggests that while fewer new options are being traded, existing positions are being held, indicating a cautious but not entirely bearish outlook by traders.
XRP/USD Technical Analysis
On the XRPUSD 4-hour price chart, the Ketner Channel bands are moving south, with the upper, middle, and lower bands touching $0.51, $0.497, and $0.4826, respectively. This trend suggests that the price of XRP is currently in a downtrend, with potential support at the lower band of $0.4826.
XRP/USD 4-hour price chart (source: TradingView)
If this support is breached, the potential support levels to watch for are $0.475 and $0.47, where buyers may step in to prevent further losses. However, XRP would need to break above the upper band at $0.51 for a reversal to occur.
With the Relative Strength Index (RSI) heading south with a value of 34.55, selling pressure appears to dominate the market. This RSI value shows that XRP is now oversold, potentially leading to a price recovery if buyers return to the market.
Furthermore, the Rate of Change (ROC) rating of -2.31 supports the notion of oversold circumstances, indicating a likely price gain when momentum swings. The upward ROC change suggests that XRP is approaching a tipping point and may reverse its current downtrend.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
