XRP has fallen below the $3 mark, yet over 500 million tokens moved on-chain in 24 hours indicate sustained whale activity and network demand, suggesting a potential price consolidation.
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XRP price corrected from $3.60 to $2.93 after a strong rally in July.
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On-chain payment volume remains elevated, reflecting active institutional participation despite price dip.
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COINOTAG analysis highlights that the RSI has dropped from overbought levels, signaling easing selling pressure.
XRP dips below $3, but strong on-chain whale activity signals potential consolidation. Stay updated with COINOTAG’s latest crypto insights.
What caused XRP to plunge below $3 despite high network activity?
XRP’s recent price drop below $3 follows a significant rally where it surged from $2.30 to over $3.60 in early July. The correction to $2.93 reflects market profit-taking and technical adjustments. However, on-chain data shows that more than 500 million XRP tokens moved within 24 hours, indicating that whales and institutional investors remain active. This sustained network activity suggests that the dip may be a temporary consolidation rather than a bearish reversal.
How does on-chain payment volume impact XRP’s price stability?
The volume of XRP moved on-chain is a key indicator of market interest and liquidity. Despite the price decline, the daily on-chain payment volume remains high compared to historical averages, peaking earlier in July at over 1.5 billion tokens. This elevated activity demonstrates ongoing demand and user engagement, which can support price stability. According to COINOTAG’s data, the relative strength index (RSI) has fallen to around 47 from overbought levels, suggesting selling pressure is easing and a price consolidation phase is likely.
XRP/USDT Chart by TradingView
Why is XRP no longer considered overbought?
After the parabolic rise in early July, XRP’s RSI indicator dropped below the overbought threshold, currently hovering near 47. This shift indicates that the intense buying momentum has cooled, reducing the risk of immediate sharp declines. Lower trading volumes during the recent price drop further support the view that the market is consolidating. If XRP maintains support above the 26 or 50-day exponential moving averages (EMA), renewed whale activity could trigger a rebound toward the $3 level.
What technical factors could influence XRP’s next price move?
The 26 EMA on the daily chart is acting as a critical support zone. If XRP holds above this moving average, it may signal strength and attract buyers. Conversely, a break below could lead to further downside. COINOTAG’s technical analysis suggests that the combination of sustained on-chain volume and RSI stabilization points to a pause in the downtrend rather than a full reversal. Institutional interest remains a key driver to watch for potential price recovery.
Frequently Asked Questions
What factors are driving XRP’s recent price correction?
XRP’s price correction is driven by profit-taking after a sharp rally and technical resistance near $3.60. Despite the dip, strong on-chain volume and whale activity suggest ongoing demand.
How does XRP’s RSI affect its price outlook?
The RSI dropping below overbought levels means selling pressure is easing, which could lead to price consolidation or a rebound if support levels hold.
Key Takeaways
- XRP price dropped below $3: marking a correction after a strong rally.
- High on-chain volume: over 500 million XRP moved in 24 hours, indicating active whale participation.
- Technical indicators: RSI fell from overbought, suggesting easing selling pressure and possible consolidation.
Conclusion
XRP’s recent dip below $3 reflects a natural market correction after a significant rally. However, sustained on-chain whale activity and stabilizing technical indicators point to a potential consolidation phase rather than a full reversal. Investors should watch key support levels and network metrics for signs of renewed momentum. COINOTAG will continue monitoring XRP’s developments to provide timely insights.
