For the past several days, Ripple’s XRP has been experiencing a period of sideways trading, struggling to surpass significant resistance barriers despite some positive price movements.
Yet, there has been a resurgence of interest from whale investors as they increase their XRP holdings, even as more XRP enters exchanges.
Increasing Holdings by Ripple Whales
Recent data from Santiment reveals that the number of whale addresses holding 1 to 10 million XRP has grown over the past 72 hours. The total count of these addresses has risen from 1,606 to 1,614.
During this interval, these whales collectively procured close to 50 million XRP, amounting to approximately $26.5 million.
This accumulation is significant, especially amidst XRP’s lack of substantial price fluctuations. Despite the stagnant price movements, whales are optimistic about a potential breakout or a long-term uptrend.
XRP Struggles to Surmount Key Resistance Levels
An examination of Ripple’s daily price trend indicates that XRP is encountering challenges in surpassing its 50-day and 200-day moving averages.
The 50-day moving average (depicted by the yellow line) serves as a prolonged resistance point, situated at roughly $0.56 currently, while the 200-day moving average (depicted by the blue line) stands at $0.54.
Throughout the last week, XRP witnessed brief periods of upward trends, albeit insufficient to breach the 200-day moving average. In the most recent trading session, XRP experienced a slight increase to $0.53.
However, sustaining this upward momentum proved challenging, with the price lingering around this level at the time of writing.
Moreover, Ripple’s Relative Strength Index (RSI) is positioned at 42, indicating a descending trend approaching the oversold zone.
Should the price continue on a downward trajectory, it might descend further into bearish territory.
Inflow of More XRP into Exchanges
Despite the positive outlook of whale accumulation, the general market behavior presents a different narrative.
Recent data from CryptoQuant showcases a surge in the transfer of Ripple into exchanges, implying an increased selling activity by traders.
Analysis of the inflow and outflow patterns demonstrates that exchange inflows have nearly doubled the outflows in recent days.
While this trend typically signals bearish market sentiment, the continuous accumulation by whale investors provides a counterweight, hinting at the persistent optimism of some traders regarding XRP’s future trajectory.
Currently, XRP struggles beneath crucial resistance levels, finding it challenging to break free from its sideways movement.
Simultaneously, there is ongoing accumulation of significant XRP amounts by whales, while smaller traders exert selling pressure, leading to increased inflows into exchanges.
As XRP’s RSI nears the oversold region, closely monitoring whether whale accumulation can alter market sentiment and drive a breakout remains imperative.