Since August 2024, the reserve of Ripple’s native token XRP has significantly declined on Binance, the world’s biggest cryptocurrency exchange. But this isn’t your ordinary dip and here’s why you shouldn’t be disheartened!
Experts and analysts view this as a positive sign, suggesting it could indicate accumulation. Let’s explore further.
According to on-chain analytics firm CryptoQuant, XRP reserves on Binance have decreased by 167 million tokens over the last five weeks. This decline suggests fewer tokens are available for sale, which could ease selling pressure and support XRP’s price.
XRP’s technical outlook looks bearish at the moment. It’s trading below the 200-day Exponential Moving Average (EMA) on the daily chart. Recently, XRP also fell below a crucial support level of $0.546 and is now trading lower. However, its Relative Strength Index (RSI) shows it’s in oversold territory, which could indicate a price recovery soon.
Currently, XRP is facing resistance from a descending trendline and a horizontal level at $0.55. If XRP breaks through these barriers and closes a daily candle above $0.56, it could rally by 15% to reach $0.65.
As of now, the major liquidation areas are near $0.519 on the lower side and $0.541 on the upper side, as traders are over-leveraged at these levels, according to Coinglass data
If market sentiment remains bearish and XRP price falls to the $0.519 level, nearly $8.76 million worth of long positions will be liquidated. Conversely, if the sentiment shifts and the price soars to the $0.541 level, approximately $6.56 million worth of short positions will be liquidated.
In recent days, XRP and other major cryptocurrencies have seen price declines due to bearish sentiment and selling by whales and institutions. However, the market is now showing signs of recovery. Major coins like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have posted gains of 4.75%, 3.8%, and 4.5%, respectively, suggesting a broader market rebound.
At press time, XRP is trading around $0.538, up 2.5% in the last 24 hours. Its trading volume has also jumped by 65%, indicating increased participation from crypto enthusiasts as the market looks to recover.
Read Also: Will Ethereum Follow Bitcoin’s Lead, or Will Solana Break Away and Shine?
With XRP’s technical indicators suggesting a potential rebound, are you buying or selling?
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