XRP Price Analysis: Despite optimism about the potential favorable ruling on the XRP lawsuit after the SEC dropped its investigation into Ethereum, whales have shifted a substantial amount of coins to centralized exchanges. According to the onchain platform whale alert, the whales moved 52,180M coins.
XRP Whale Trend Amid Price Recovery
In the last 24 hours, bullish momentum has had the upper hand in the XRP market, with the price swaying between an intra-day high and low of $0.4992 and $0.488, respectively. At press time, XRP was trading at $0.4936, a 0.80% surge from the support level.
28,650,000 #XRP (14,212,443 USD) transferred from unknown wallet to #Bitstamphttps://t.co/6ryBWIze6h
— Whale Alert (@whale_alert) June 19, 2024
Amid this recovery, XRP has witnessed whale activity, with 52.18 million XRP, valued at approximately $25.88 million, transferred to centralized exchanges such as Bitstamp and Bitso. This activity involves two major transactions: 28.65 million XRP (about $14.21 million) moved to Bitstamp and 23.53 million XRP (approximately $11.67 million) to Bitso.
These large transfers indicate potential selling pressure, as whales may be looking to capitalize on recent price recoveries or mitigate risk in anticipation of market fluctuations.
However, if this bull trend continues and crosses the $0.4992 mark, the subsequent resistance levels to consider are $0.505 and $0.510. On the other hand, if bears take charge of the market and drive the price below the $0.488 support level, the next support levels to watch will be $0.483 and $0.478.
Source: Coinglass
In this price recovery, XRP’s market capitalization rose by 0.60% to $27,425,091,894, while the 24-hour trading volume dropped by 51% to $996,746,896. Unlike the overall trading volume, the options market for XRP shows the opposite trend.
Open interest has increased by 15.02%, showing that more traders are taking on positions in anticipation of price fluctuations in XRP.
This increase and a 46.56% fall in options volume could mean that investors are planning for future price changes through options trading.
XRPUSD Technical Analysis
A double bottom pattern has been formed on the XRPUSD 4-hour price chart, indicating a bullish reversal pattern. This pattern is essential because it shows that the price has been tested and has not broken through the support level twice, suggesting good demand at these levels.
The subsequent increase in price action is heading towards the neckline at around the $0.50 mark, which only adds further credibility to the strength of this support.
The neckline of the double bottom pattern is identified at the bottom of the second trough at $0. 50 level is a critical resistance level for XRP. This price level is crucial for the traders as a breakout and close above this level may validate the bullish reversal signal formed by the double-bottom pattern.
Source: TradingView
A break out of the neckline is usually followed by higher buying pressure as market traders see the possibility of the market advancing further. For XRP, the next target upon breaking the neckline is expected to be around $0.56.
With the Relative Strength Index (RSI) rating of 50 suggesting a neutral stance, confirming the double bottom pattern could attract more buyers looking to capitalize on the potential uptrend. However, if the RSI shows overbought conditions above 70, traders may want to exercise caution and consider taking profits as the price approaches the $0.56 target.
Concurrently, the Money Flow Index (MFI) motion south, with a rating of 46, indicates a slight decrease in buying pressure, which could slow down the upward momentum. This may result in a consolidation phase before reaching the $0.56 target for XRP.
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