XRP Holders in Trouble, Exchange Reserve Soars

Published by

Zameer Attar

October 4, 2024

It appears that Ripple’s native token is poised for a massive price crash as whales and institutions continue to offload their holdings. Over the past seven days, Binance, the world’s largest crypto exchange, has seen a significant dump of XRP tokens by whales and institutions, according to the on-chain analytics firm CryptoQuant.

Binance’s XRP Reserve Soars

According to the data, Binance’s XRP reserve has increased by 135 million worth $72.63 million, over the past seven days. This significant rise in exchange reverse is a bearish sign for the XRP holders. Investors and whales often transfer their holdings to exchanges either to sell or stake.

Data shows that when XRP reached its resistance level of $0.65 level, the exchange reserve started increasing. Since then, the asset’s price has declined by over 20%.

Current Price Momentum

Currently, XRP is trading near $0.523 and has experienced a price decline of over 8.32% in the past 24 hours. During the same period, its trading volume increased by 30%, indicating higher participation from traders and investors. In this, some may be accumulating, while others are potentially dumping, leading to a spike in trading volume.

XRP Technical Analysis and Upcoming Levels

According to expert technical analysis, XRP appears bearish as it fails to hold a strong support level of $0.542 and falls below the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a technical indicator that indicates whether an asset is in an uptrend or downtrend.

Given the current market sentiment and XRP’s price action, there is a strong possibility that the token could face another 12% decline to reach the next support level of $0.462 in the coming days.

Bearish On-Chain Metrics

This negative outlook is further supported by on-chain metrics. Coinglass’s XRP Long/Short ratio currently stands at 0.90, indicating strong bearish sentiment among traders. Currently, 52.54% of top XRP traders hold short positions, while 47.46% hold long positions.

When combining both technical analysis and on-chain metrics, it appears that bears are currently dominating the asset and price may decline in the coming days.

Zameer Attar

Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.