XRP whales are feeling the pressure of the bearish market sentiment, as evidenced by a recent dump of 18.03 million tokens worth $10.39 million to the Bitstamp exchange. The identity of the wallet address remains a mystery, leaving many speculating on the motives behind such a significant sell-off.
The massive XRP dump has the potential to create further selling pressure on the already struggling cryptocurrency. Currently trading near $0.578, XRP has seen a decline of over 1.8% in the last 24 hours. Despite this, trading volume has increased by 15%, indicating heightened activity from traders and investors in response to the market downturn.
Technical analysis suggests that XRP is still in an uptrend, trading above the 200 Exponential Moving Average (EMA). The consolidation phase between $0.56 and $0.59 has been ongoing for the past six days. Experts believe that a breakout from this range could lead to an upside rally, with a potential 20% surge to the $0.75 level if XRP closes a daily candle above $0.60.
However, resistance is expected at the $0.65 level, where significant selling pressure may halt XRP’s upward momentum. The bullish outlook remains contingent on a daily candle closure above $0.60, failing which the rally may falter.
On-chain metrics paint a bearish picture for XRP, with Coinglass’s XRP long/short ratio at 0.96, signaling bearish sentiment among traders. Additionally, future open interest has dropped by 5.5% in the last 24 hours. Top traders currently hold 50.85% short positions and 49.16% long positions, indicating a dominance of bears in the market.
As XRP navigates through the challenges of the current market conditions, investors and traders will be closely monitoring its performance and any potential catalysts that could drive a turnaround in sentiment. Stay tuned for further updates on XRP’s journey in the volatile cryptocurrency landscape.