In the last month, XRP has undergone an impressive surge, witnessing a 148.54% rise in its value. However, its pace has now decelerated, transitioning into what seems to be a period of accumulation.
This consolidation phase has contributed to a more moderate price trajectory, resulting in weekly losses of 2.43% and a daily decrease of 0.93%.
An analysis conducted by CryptoCrypto has highlighted the potential for a price recovery, although any progress might encounter delays contingent on market circumstances.
Whales Instigate Market-Altering Actions in XRP
As per the findings from Whale Alert, a substantial amount of XRP has been withdrawn from Binance, one of the major cryptocurrency platforms, in the last 24 hours.
Data tracking showed a transfer of 800,000 XRP, valued at $1,927,321,529 at the time, from the exchange.
Such significant outflows typically signify a positive market sentiment.
The act of investors moving large holdings from exchanges to private wallets indicates a preference for retention over selling, given that private wallets are less commonly utilized for trading.
This trend indicates that whales are positioning themselves for potential long-term benefits.
If these outflows persist, they could trigger a supply squeeze, diminishing XRP’s availability on exchanges and potentially propelling its price upwards.
XRP is currently in an accumulation phase, with its price fluctuating within a specified range in recent weeks.
XRP May Hit $4 Following the Accumulation Phase
The recent supply squeeze driven by whales hints at a breakout from this stage. If a breakout unfolds, XRP could surge by 66.44%, approaching the $4 mark.
This accumulation phase, technically termed as a symmetrical triangle, involves trading within a converging support and resistance, moving back and forth.
In the absence of a breakout, XRP is anticipated to linger in the accumulation phase, trading sideways without significant price fluctuations, noticeable gains, or substantial losses until the phase’s conclusion.
Market sentiment surrounding a potential bullish move was analyzed by CryptoCrypto, revealing mixed responses from investors regarding XRP’s immediate trajectory.
XRP Market Signals Display Contradictory Trends
As of the latest data, XRP’s Open Interest (OI) has dwindled by 2.35% in the past 24 hours, resting at $0.35 billion.
A gradual decrease in Open Interest suggests that short positions exceed long positions in the market, indicating prevailing downward pressure on the asset.
However, there is a glint of hope in the Funding Rate, which remains bullish with a positive reading of 0.0102% over the same period.
While the encouraging Funding Rate aligns with the existing positive sentiment, a reversal in the Open Interest trends would be essential to cement a clear market direction for XRP.