A massive transfer of 30 million Ripple [XRP], valued at $17.4 million, has been detected from Upbit, sparking discussions of a potential bullish surge.
With trading volume on the rise, traders are closely watching this whale activity, eager to gauge its impact on the market momentum.
The question lingers whether XRP can endure the pressure required to surpass key resistance levels and initiate a breakout.
Is XRP Ready for a Market Upturn?
At the time of writing, the price of XRP was at $0.5861, exhibiting a decrease of 1.63%. Despite this decline, the uptick in whale activity and heightened trading volume are instilling optimism among market participants for a potential recovery.
Within the last 24 hours, the number of active addresses has grown by 1.21%, currently totaling 10,347. This uptrend indicates an increasing number of users engaging with the XRP ledger, potentially signaling escalating demand.
Furthermore, the transaction count on the XRP ledger has seen a 0.72% rise in the past 24 hours, amounting to a total of 1.388 million transactions, as reported by CryptoQuant.
This surge in transactions further signifies an expanding network activity, usually considered a positive indicator for price movement.
Decline in Exchange Supply—An Encouraging Sign?
Another factor contributing to the optimistic sentiment is the decrease in exchange reserves of XRP. Presently, the exchange supply of XRP has lowered by 0.29% in the last 24 hours, standing at 2.9769 billion XRP.
Diminishing exchange reserves typically suggest reduced selling pressure, as more tokens are being withdrawn from exchanges and shifted to personal wallets.
This trend may imply that investors foresee a price upsurge, resulting in limited supply available for immediate trading.
Analysis of Liquidation Activity and its Implications for XRP’s Trajectory
An examination of XRP’s liquidation data reveals notable activity in both long and short positions.
On September 23rd, liquidations totaled $579,009, with the majority being short positions ($61,000) across platforms like Binance and OKX.
In contrast, long positions exceeded $362,000. This indicates enduring support from long traders despite short-term fluctuations, potentially aiding in pushing the price upwards.
Can XRP Sustain its Bullish Drive?
Despite encountering a minor price decline, the surge in whale activity, increased network involvement, and the decrease in exchange reserves present a positive outlook for XRP.
If these trends persist, XRP could uphold its momentum and potentially breach crucial resistance levels.
Nonetheless, traders are advised to exercise caution, as continuous buying pressure is crucial for a breakout. The upcoming days will unveil whether this whale activity ignites a sustained rally in the market.