XRP has experienced a recent decline, with a 21.72% drop in value due to increased selling pressure. However, insights from CryptoCrypto’s analysis indicate a potential shift in sentiment towards the positive side.
If expectations materialize, XRP could continue its upward trajectory, potentially setting a new local high in the market.
Increased Accumulation of XRP by Whales
XRP whales, who possess substantial amounts of the token ranging from 10 to 100 million, have shown bullish behavior by accumulating more of the asset.
Recent data from Santiment indicates that within the last 48 hours, approximately 150 million XRP, equivalent to $388 million, has been amassed.
Significant accumulation like this often precedes a potential price surge, suggesting a bullish momentum in the near future. The fact that whales are considering the current price as a discount hints at a possible uptrend.
The derivatives market sentiment seems to align with the accumulating behavior of whales, as supported by various key metrics.
Surge in Short Liquidations
Over the past 12 hours, there has been a notable increase in short liquidations across different timeframes totaling $2.83 million. Short contracts amounting to $2.15 million and long contracts worth $676,390 were closed during this period, reflecting a trend visible even in the 4-hour timeframe.
The surge in short liquidations suggests that short traders are facing losses as the market moves against their positions, indicating a potential uptrend.
Analyzing the overall derivatives market sentiment, CryptoCrypto examined the OI-weighted funding rate, a combination of Open Interest and funding rate to project market direction possibilities.
A rising OI-weighted funding rate signals an inclination towards an upward market movement, while a declining trend may indicate growing selling pressure. Currently, the rate stands at 0.0064%, suggesting a positive market sentiment.
Is $3.3 the Next Attainable Target?
With the prevailing bullish sentiment, XRP could aim for $3.37, a significant level it last reached on 16 January.
This price level holds substantial sell orders worth $15.86 million, which could trigger a pullback. However, if the bullish sentiment continues, these sell orders from derivative traders might be forcibly closed, leading to a potentially higher XRP price.
President Donald Trump recently shared a post on TruthSocial highlighting the impact of the “Trump effect” on Ripple’s operations and U.S. expansion. His endorsement could bolster retail demand for the altcoin, especially if there is approval for an XRP Spot ETF in the U.S.