In recent times, XRP has experienced a downward trend, with its value dropping by 21.72% due to increased selling pressure. Nonetheless, an analysis by CryptoCrypto suggests that a shift may be on the horizon as a more positive sentiment emerges.
If things go as anticipated, XRP could capitalize on last week’s gains, potentially reaching a new local peak in the market.
Accumulation Trend among XRP Whales
Observations of XRP whales, individuals holding between 10 to 100 million of the token, show a bullish stance as they continue to accumulate more of the asset.
Recent data analysis by Santiment indicates that over the past 48 hours, approximately 150 million XRP, valued at $388 million, has been accumulated.
Such significant accumulation can signal a forthcoming major price surge. The fact that these whales view the current price as a discounted rate suggests they are positioning themselves ahead of a potential uptrend.
The derivatives market sentiment seems to align with the ongoing accumulation by whales, as indicated by various key metrics.
Shorts Facing Losses in the Market
Noteworthy short liquidations have occurred across major timeframes in the last 12 hours. A total of $2.83 million, consisting of $2.15 million in short contracts and $676,390 in long contracts, were closed. This pattern is also evident at the 4-hour interval.
Mass liquidations within a specific market segment signal contracts being forcibly shut down due to market movements working against traders. In this scenario, the market appears to be challenging short-position traders – signifying a potential uptrend.
To assess the overall derivatives market sentiment, CryptoCrypto has examined the OI-weighted funding rate, a metric that blends Open Interest and funding rate to suggest potential market direction.
A rising OI-weighted funding rate indicates a market tilt towards an upward trajectory, while a declining trend suggests mounting selling pressure. Presently, the former scenario seems prevalent, with the OI-weighted funding rate standing at 0.0064%.
Is $3.3 the Next Attainable Target?
The prevailing bullish sentiment in the market might propel XRP towards $3.37, a significant peak last seen on January 16.
This level holds substantial importance for XRP as there are $15.86 million worth of sell orders awaiting activation, indicating a potential price drop. However, if the bullish sentiment persists, these sell orders from derivative traders could be forcefully closed, paving the way for XRP to achieve even higher levels.
President Donald Trump recently shared an article on TruthSocial discussing the impact of the “Trump effect” on Ripple’s operations and expansion in the United States. His endorsement has the potential to boost retail demand for the altcoin, especially in anticipation of potential approval for an XRP Spot ETF in the US.