- Whales sell 40 million XRP, causing market pressure.
- XRP near upper Bollinger Band, potential pullback expected soon.
- RSI at 57.34, neutral sentiment leaves room for movement.
Whales have offloaded a significant amount of XRP, with a massive 40 million XRP sold in just 24 hours. According to Ali Martinez, such large transactions highlight the activity of major holders in the market.
As whales control a substantial portion of XRP’s total supply, their actions can have a direct impact on the price. This sell-off will raise the supply in the market, which may push down the prices, especially when the reaction of retail investors is negative.
Even with the intense selling pressure, XRP has been able to remain in the same position, with a price of $3.03, which has increased slightly by 0.62% over the past 24 hours. However, the fact that 40 million XRP were offloaded also casts doubt on future price changes.
In the past, other whale-orchestrated sell-offs have led to price adjustments as a result of the market being unable to take into account the supply upsurge. This trend may end in further pressure on XRP, especially when there is extensive selling by major holders.
Also Read: Canary XRP and Hedera ETFs Listed on DTCC Ahead of SEC Decision
Technical Analysis of XRP’s Price Movement
Looking at the technical indicators from the TradingView chart, XRP is currently trading near the upper Bollinger Band. This is an indication that the price is close to the upper limit of the last range.
When the asset is traded at or close to the upper Bollinger Band, then it is generally an indication of an overbought situation. The price may not be able to break above this resistance level, and a pullback may be anticipated; the middle Bollinger Band may serve as a possible support area. Here, the price may revert to about $2.90 in the event of a correction.
Source: Tradingview
Also, XRP has an RSI of 57.34, meaning that the market mood is neutral. The RSI of this magnitude indicates that XRP is neither overbought nor oversold, so there would be a possibility of a price swing in both directions.
Once the RSI is above 70, it means that it is overbought and would cause a price reversal. On the other hand, the fall of RSI below 30 would be an indication of oversold, indicating a buying opportunity in case the price keeps falling.
Impact of Whale Activity on XRP’s Price
Whale activity plays a critical role in XRP’s price movements, especially when large holders decide to offload significant amounts of the token. The recent sales of 40 million XRP added supply to the market, which may cause downward pressure on the price.
If this selling activity persists, XRP may experience additional losses in the short term. However, in case retail demand is high and the rate of selling by whales is low, the price may stabilize and surge again.
The offloading of 40 million XRP indicates the possible volatility of the market. The present price of XRP is close to the upper Bollinger Band, and the neutral RSI indicates that it could be resisted and rolled back in case the sell-off persists. Monitoring whale activity and technical indicators will be crucial to understanding the potential direction of XRP’s price.
Also Read: Crypto Market Surge: Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) Lead the Charge
