After experiencing a significant rebound of 20% in the past 24 hours, Ripple’s XRP was trading at $2.57 at the current moment. The daily trading volume reached $18.8 billion, supporting this price surge.
Despite this recovery, XRP encountered a 7-day decrease of 18.57% due to uncertainties in the market and significant sell-offs by large holders. The current market cap of XRP is $146.4 billion, with a circulating supply of 58 billion tokens.
The recent uptrend in XRP’s price occurred amidst challenges faced by tech stocks and cryptocurrencies, resulting from trade tensions involving the U.S., Canada, and Mexico.
While tariffs on Canada and Mexico were delayed, the ongoing tariffs on China continued to create uncertainty and pressure in the markets.
Impact of Whale Sell-Offs on Market Volatility
Major sell-offs by large holders, known as whales, have significantly influenced the price fluctuations of XRP. Reports suggest that over 130 million XRP tokens were released into the market in a single day, leading to bearish sentiment and market flooding.
These massive sell-offs triggered a chain reaction, prompting smaller investors to follow suit and amplify the downward pressure on the price.
Data from Decentralized Exchanges (DEX) revealed widespread selling activity, with CryptoQuant highlighting a consistently low Buy-Sell Ratio for XRP in the past 16 hours.
The lack of buying interest on both DEXs and centralized exchanges emphasized the prevailing bearish sentiment in recent trading sessions.
Analysis of XRP’s Technical Levels: Resistance and Support
XRP broke below the middle Bollinger Band at $3.03, indicating a shift towards bearish momentum. The closest resistance point is $2.62, while a crucial support level is identified at $2.20.
A further decline could drive XRP towards $2.00, a significant level to monitor for potential price action.
The technical indicator, Awesome Oscillator (AO), displayed a negative reading of -0.0511, suggesting a weakening bullish trend.
Similarly, the Cumulative Volume Delta (CVD) recorded a value of -1.76 million, corroborating substantial selling pressure and sustained bearish sentiment.
To regain bullish momentum, XRP must reclaim the $2.62 resistance level and aim towards testing the $3.03 target.
Market Conditions and Bitcoin’s Influence
The recent movements in Bitcoin’s price have also impacted the performance of XRP and other cryptocurrencies.
Aggregate Funding Rates indicated a slightly bullish sentiment, with a projected funding rate of 0.0074, hinting at potential short-term upside movements.
However, Bitcoin’s resistance levels at $102,000, coupled with its recent rejection at $99,500, have instilled caution in the broader crypto market.
While the temporary relaxation of tariffs between the U.S. and Canada alleviated some market pressures, uncertainties surrounding U.S.-China trade relations persist.
These factors, in addition to whale activity, are poised to continue influencing the price movements of XRP in the days ahead.