Since hitting a 52 week high of $2.80, Ripple (XRP) has consolidated within a narrow price range and struggled to maintain an upward momentum. Throughout the week, XRP price moved sideways amid relatively low trading volume.
It has corrected by more than 22% in the last two weeks. This decline is attributed to a combination of factors, including persistent whale selloff and decreasing investor confidence.
At press time, Ripple (XRP) price traded at $2.29, noting a rise over 1.20% overnight. Its market cap stood at $130.94 Billion and has a total supply of 99.98 Billion.
Are XRP Whales Taking Profits?
Amidst the price consolidation, XRP whales have continued to book significant profits.
Data from WhaleAlert shows that a whale has transferred 30,171,667 XRP tokens, valued at more than $69.24 Million to the Coinbase exchange. This transfer could indicate an intent to sell.
On-Chain Metrics Flashes Sell Signal For XRP Price
Amidst the Ripple (XRP) price consolidation, the on-chain metrics have flashed a sell signal and triggered an alert for the investors.
– Advertisement –
Data from Cryptoquant highlights that the exchange reserve noted a significant spike over the last seven days and soared to 2.97 Billion.
If the exchange reserve continues to soar, it suggests significant selling pressure and further price decline.
Typically, an increase in exchange reserve means that institutional investors and whales were moving their holdings to exchange for a potential selloff, which could fuel selling pressure in the asset.
Additionally, the active addresses dropped over 7% in the last 24 hours, signaling a lack of confidence among the market participants.
This drop in network activity has raised questions about whether the on-chain decline and technical factors could signal bearish momentum.
XRP Price Prediction: Technical Analysis
On the daily timeframe, XRP price continued to move sideways and failed to gain traction. Despite the price consolidation, XRP crypto held gains above the 20 day EMA mark, signaling that the uptrend was still intact.
However, a drop below the $2 mark could trigger selling pressure and it may retest the 61.8% Fib support near the $1.70 mark.
The Average Directional Index (ADX) line was dropped to the 30 threshold signaling that a trend reversal could be seen ahead.
Speculative Interest Wanes
Ripple’s Open Interest (OI) has dropped more than 1.20% to $2.90 Billion, which conveys that traders are closing their positions on Ripple. The reduced market participation is further seen in the crowd sentiment as depicted by Market Prophit.
The declining score indicates that crowd sentiment on XRP is bearish, indicating that traders anticipate further dips.
Also, the Long/Short ratio favored the bearish case, as 52% of the short contracts dominated 47% of the longs.
This signals a negative outlook as bears have added more short positions and could facilitate a significant decline soon.
The immediate support zones for XRP were $2.10 and $2, whereas the upside hurdles were $2.60 and $3.
