XRP Facing Renewed Selling Pressure Amidst Whale Activity
The cryptocurrency XRP is experiencing heightened selling pressure as significant holders have disposed of nearly 200 million tokens within a span of 48 hours. This action has intensified the challenges already present in the market’s fragile structure.
Whale Holdings Experience Significant Decline
Recent data highlights a sharp reduction in XRP holdings by wallets containing between 1 million and 10 million tokens. According to on-chain analytics from Santiment, shared by Ali Martinez, this marks one of the most substantial two-day declines in whale holdings observed this quarter.
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Market Trends and Whale Activity
Amidst this sell-off, XRP continues to follow a downward trajectory, with prices edging closer to the lower boundaries of their current range. The consistent reduction in exposure by large holders indicates waning confidence, and if the downward momentum gains strength, XRP might revisit the crucial $2 support level. Failure to maintain above this threshold could result in further significant losses.
Increased Whale Transactions: Accumulation or Distribution?
This potential downturn coincides with XRP witnessing 716 whale transactions, each exceeding $1 million, marking the highest count in four months. This uptick raises speculation about whether whales are accumulating or offloading their holdings, as such spikes in high-value transfers often precede notable price fluctuations.
If whales are indeed buying, this activity might underlie a short-term recovery; conversely, if they are distributing, it may intensify the prevailing downtrend and elevate the risk of a more pronounced pullback.
XRP Price Analysis
As of the latest update, XRP is trading at $2.26, reflecting a 0.28% increase over the past 24 hours, albeit with modest intraday movements. At this price point, XRP remains significantly below its key simple moving averages, indicating ongoing downward pressure.
The 50-day simple moving average (SMA) at $2.57 serves as near-term resistance, approximately 12.7% above the current price, suggesting substantial buying is necessary to reclaim a bullish position and potentially challenge the $2.70 level.
Meanwhile, the 200-day SMA at $2.65, about 16.2% higher, acts as a longer-term benchmark. A decisive break above this level could suggest a trend reversal, while failing to do so might leave XRP susceptible to further declines toward $2.
Relative Strength Index (RSI) Analysis
Further supporting this outlook, the 14-day Relative Strength Index (RSI) stands at 41.5, indicating balanced momentum but lacking strong conviction for an immediate breakout in either direction.
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