XRP Whales Add 58.9 Million Tokens, Time to Buy?

In this market reversal, XRP whales are taking advantage of the recent price decline as they add millions of tokens to their wallet. On October 4, 2024, the blockchain-based transactions tracker Whale Alert made a post on X (previously Twitter) that whales have withdrawn a massive 58.9 million XRP tokens, worth $30.8 million from Binance and Indodax. 

XRP Whale Activity Amid Price Pressure

This post on X gathered significant attention from crypto enthusiasts as XRP has experienced notable selling pressure and a price decline of over 20% following the recent appeal by the United States Securities and Exchange Commission (SEC) in the Ripple lawsuit.

However, the overall cryptocurrency market has started recovering, and XRP has jumped by 2.10% over the past 24 hours, currently trading near the $0.534 level. During the same period, it appears that traders and investors are showing lower interest, resulting in a 40% decline in XRP trading volume.

XRP Technical Analysis and Upcoming Level

According to expert technical analysis, XRP appears bullish despite trading below the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a technical indicator used by traders and investors to determine whether an asset is in an uptrend or downtrend.

Additionally, XRP is currently trading in a channel pattern between the $0.51 and $0.65 levels for the last three months. At present, XRP is at the bottom of the channel pattern, and there is a strong possibility that it soar by 20% to the $0.65 level in the coming days.

Bearish On-Chain Metrics

Despite XRP’s bullish outlook, its on-chain metrics flashing a bearish signal. According to the on-chain analytics firm Coinglass, XRP’s long/short ratio currently stands at 0.95, indicating bearish market sentiment among traders. Additionally, its future open interest has remained unchanged in the past 24 hours.