XRP’s Whales Hold Back, Heralding Price Rally

In a recent turn of events within the cryptocurrency market, XRP‘s price has observed a 2.67% decline over the last 24 hours, settling at $2.83, and resulting in a weekly loss of approximately 7.5%. However, Ripple‘s renowned token has showcased resilience over the past three months by achieving a gain exceeding 30%

Why Are Whales Holding Their Position?

The critical piece of information signaling potential market shifts is the exchange inflow value bands. This metric assesses how much XRP is directed to exchange wallets from different transaction sizes. A significant reduction in inflows indicates a pause in selling activity among whales. From August 26, there has been a notable decrease in substantial inflows on Binance, with transactions ranging from 100,000 to 1 million XRP plummeting by 95%. At the same time, inflows surpassing 1 million XRP have dipped by 93%.

Such a pronounced reduction suggests that whales are opting to hold their XRP instead of transferring it to exchanges, thereby reducing market selling pressure. Their patience supports XRP’s price foundation, and this behavior could herald a potential recovery as larger investors’ waiting indicates confidence in future price increases.

Could the Buyer-Seller Ratio Indicate an Upcoming Bottom?

An essential indicator to watch is the buyer-seller ratio, which reveals market dominance. A figure above 1 indicates buying strength, whereas a lower figure signifies selling pressure. Presently at 0.90, it suggests selling pressure is more pronounced. This trend can often reflect the actions of retail investors who typically act quickly. Yet, the slowdown in whale activity suggests this selling pressure may not be substantial.

Historically, when this ratio fell below 1 in August, XRP commonly experienced local lows followed by rebounds. A case in point is August 2, where the ratio dropped to 0.88, leading XRP to surge by nearly 20% in the following weeks. Another similar trend was observed around August 19, hinting at possible price recoveries in similar scenarios.

What Is the Future Trajectory for XRP Prices?

Technical insights further corroborate this optimistic outlook. The Relative Strength Index (RSI), diverging bullishly, rose even though XRP’s price hit a lower low between August 19 and 29. This indicates weakening momentum in the downward direction, thereby increasing the chances of a rebound.

Critical price levels to monitor include $2.84, as surpassing this could push XRP’s price up to $2.95. Should XRP break past the psychological barrier of $3, this would pave the way for higher bullish expectations. Overcoming $3.33 would serve as confirmation of a complete trend reversal.

“The reduction in selling from larger players hints at a supportive backdrop for XRP’s price,” an expert noted.

Observing trends in whale behavior and technical indicators paints an optimistic picture for XRP’s near-term future. The market dynamics suggest potential rebounds are on the horizon if supportive conditions persist.