XRP price surged 3% following a 93% drop in whale-to-exchange flows, indicating reduced selling pressure. Bullish Chaikin Money Flow signals growing accumulation, setting XRP up for a potential breakout above $4.
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XRP whale selling has sharply declined since July, easing downward pressure on price.
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Chaikin Money Flow shows bullish divergence, reflecting increased buyer demand despite slow price gains.
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If XRP surpasses $3.37, targets of $3.62, $3.83, and $4 become attainable milestones.
XRP price climbs 3% as whale selling drops 93%, with bullish accumulation signals pointing to a $4 breakout. Stay updated with COINOTAG’s latest crypto insights.
Whale Selling Declines Sharply, Reducing XRP Downside Risk
Whale-to-exchange flows for XRP have plummeted by 93% since mid-July, signaling a major cooldown in large holder sell-offs. On July 11, whale flows peaked at 43,575 XRP but dropped to just 2,965 XRP by July 28. This drastic reduction suggests whales are holding rather than offloading, easing selling pressure and supporting price stability.
Despite this, flows remain nearly double the levels seen on July 25, indicating some volatility may persist. Market consolidation is likely as whales and new buyers find a balance.
Chaikin Money Flow Divergence Indicates Growing Accumulation
The Chaikin Money Flow (CMF) indicator reveals a bullish divergence: while XRP’s price formed lower highs, CMF recorded higher highs. This divergence highlights increasing capital inflows and accumulation behind the scenes.
With whales stepping back, accumulation appears driven by a broader base of buyers. CMF’s volume-weighted accumulation metric often precedes significant price moves, suggesting early bullish momentum building for XRP.
XRP price and whale to exchange flow: CryptoQuant
Key Resistance Levels: What Happens If XRP Breaks $3.37?
XRP is approaching a critical breakout level at $3.37, which if surpassed, could trigger a rally toward $3.62 and $3.83. These levels align with important Fibonacci extensions and historical resistance points.
Clearing $3.62 would position XRP for a potential new all-time high near $4.00. Conversely, a breakdown below $2.96 would invalidate this bullish structure and could delay upward momentum.
XRP price action and CMF divergence: TradingView
XRP price analysis: TradingView
What Is Driving XRP’s Recent Price Strength?
XRP’s recent 3% price increase is driven primarily by a sharp decline in whale selling and rising accumulation indicated by the Chaikin Money Flow. Reduced large-holder sell pressure combined with increased buying volume creates a favorable environment for price appreciation.
How Does Whale Activity Affect XRP’s Market Dynamics?
Whale-to-exchange flows serve as a key indicator of potential sell pressure. When whales reduce transfers to exchanges, it signals less intent to sell, which can stabilize or boost price. The 93% drop in these flows since July’s peak suggests whales are holding, allowing smaller buyers to accumulate XRP.
Frequently Asked Questions
How significant is the Chaikin Money Flow divergence for XRP?
The Chaikin Money Flow divergence is a strong bullish signal showing increased buying volume despite stagnant price, often preceding upward price movements.
Why is whale selling important for XRP’s price?
Whale selling impacts XRP’s supply on exchanges; less selling from whales reduces downward pressure, helping prices to stabilize or rise.
Key Takeaways
- Whale selling has decreased by 93%, reducing XRP’s immediate sell pressure.
- Chaikin Money Flow shows bullish divergence, signaling growing accumulation.
- Breaking $3.37 could open the path to $4, with key resistance levels at $3.62 and $3.83.
Conclusion
XRP’s price momentum is strengthening as whale selling cools and accumulation rises, supported by bullish Chaikin Money Flow signals. Approaching critical resistance levels, XRP is poised for a potential breakout toward $4, contingent on sustained buyer demand and market conditions. Investors should watch key price points closely for confirmation of this upward trend.
