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XRP is experiencing significant market activity as traders adjust their positions ahead of major political events, alongside movements from crypto whales.
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Analysts suggest that the price movements of XRP are being heavily influenced by both macroeconomic factors and specific trading behaviors of large holders.
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In a recent observation, a COINOTAG source noted, “The volatility surrounding XRP is primarily driven by whale transactions and market sentiment shifts.”
Explore the latest developments in XRP as whale activity spikes and trading volumes shift, signaling potential volatility in the coming weeks.
Whale offloads 30 million XRP
According to blockchain transaction tracker Whale Alert, a crypto whale dumped approximately 30.17 million XRP tokens, worth nearly $76.34 million, on 12 January. This substantial sell-off has not only sparked bearish activity but has also contributed to a rise in short positions among traders, nudging the price lower. The prominence of XRP in the broader market context reveals a tendency for volatility, especially when larger holders enact significant trades.
Uptick in Binance’s XRP reserves
The current market situation has not only affected a single whale, but data from on-chain analytics firm CryptoQuant revealed that Binance’s reserves have seen a significant hike over the last 48 hours.
Source: CryptoQuant
According to the data, Binance’s reserves grew by 34 million XRP, suggesting that whales and long-term holders have moved their holdings to the exchange, possibly for selling or swapping purposes. These inflows both highlight confidence in potential market maneuvers and underscore the pivotal role exchanges play in price determination.
XRP price momentum following breakout
However, this notable activity by whales and investors came on the back of XRP breaking out from a bullish flag-and-pole price action pattern while also approaching a strong resistance level at $2.56.
Source: TradingView
Since then, however, the cryptocurrency has faltered on the charts, primarily due to activities from prominent market players. At press time, XRP was trading near $2.42, experiencing a price decline of over 2.55% in 24 hours. Over the same period, as a direct response to the recent dump and the increase in exchange reserves, its trading volume has plummeted by 30%. This decline indicates increasing fear among traders and investors compared to earlier periods, reflecting the challenges in sustaining bullish momentum.
XRP price prediction
Based on the altcoin’s price action, XRP appears bearish on the shorter timeframe, with a strong possibility of dropping by 20% to hit the support level of $1.92 in the coming days. However, this bearish outlook will only hold if XRP’s daily candle closes below $2.30. If it holds above this threshold, there may be a chance for recovery. Despite recent bearish trends, market sentiment may experience a turnaround following the inauguration of President-elect Donald Trump on 20 January, which could influence trading patterns and investor confidence.
Conclusion
The ongoing movements from whales and adjustments in market dynamics highlight the need for traders to remain vigilant. With key resistance and support levels in play, XRP investors should be prepared for potential volatility ahead. A close monitoring of both market sentiment and political developments will be essential for navigating the upcoming trading environment.
