Ripple [XRP] has been trading sideways for the past few days and despite the positive price trend, it has been unable to break above the key resistance level at the moment.
However, whale investors have shown renewed interest and increased their holdings, although this has not stopped more XRP from flowing into exchanges.
Ripple Whales continue to increase their holdings
According to data from Santiment, the number of Ripple whale addresses holding between 1 million and 10 million XRP has increased over the past three days, with the total number of these addresses increasing from 1,606 to 1,614.
During this period, these whales received a total of nearly 50 million XRP, worth about $26.5 million.
This accumulation is noteworthy, especially considering that XRP has been moving sideways without significant price movement. Despite stagnant price action, whales are still betting on a potential breakout or long-term growth.
XRP fails to break through key resistance level
Analysis of Ripple’s daily price trend shows that XRP is struggling to break above its 50-day and 200-day moving averages.
The 50-day moving average (yellow line) acts as a long-term resistance level and is currently around $0.56, while the 200-day moving average (blue line) is $0.54.
XRP experienced some brief uptrends last week, but the gains were not enough to push the price above the 200-day moving average. In the latest trading session, XRP rose slightly to $0.53.
However, it has not been able to sustain the momentum and the price is still hovering around this level as of the time of writing.
Moreover, Ripple’s relative strength index (RSI) is 42, which suggests a downtrend that is getting closer to the oversold territory.
Therefore, if the price continues to decline, it could fall further into the bearish zone.
More XRP flowing into exchanges
While whale accumulation indicates long-term positive sentiment, overall market behavior tells a different story.
The latest data from CryptoQuant shows that an increasing amount of XRP is being moved to exchanges, suggesting that more traders are selling their holdings.
An analysis of the inflow and outflow charts shows that over the past few days, the inflows to exchanges have been almost twice as much as the outflows.
While this would typically indicate bearish market behavior, continued accumulation by whale investors provides a counterbalance, suggesting that some traders remain optimistic about XRP’s future potential.
At press time, XRP remains stuck below a key resistance level, struggling to break out of its sideways trend.
Meanwhile, big investors continue to accumulate large amounts of XRP, while the token faces selling pressure from smaller traders, causing more funds to flow into exchanges.
With XRP’s RSI approaching oversold territory, it will be crucial to monitor whether whale accumulation can change sentiment and drive a breakout.
Is XRP about to see a big move?
A spike in volatility in the coming week could change the perception of XRP, an asset that has had difficulty breaking through important resistance levels. XRP’s ability to maintain price above the $0.52 support level is currently one of its main strengths. The price has tested this area several times but has remained stable without falling further.
The 100-day and 200-day moving averages, as well as other moving averages just below the current price, are additional sources of support for XRP. These moving averages could act as a safety net for the asset if more downward pressure emerges. The formation of a wedge pattern suggests a possible breakout scenario in the near term. Given XRP’s recent sideways movement, a breakout could occur in either direction. Wedge patterns often precede sharp moves.
In case of a bullish breakout, the upward sloping trendline of the chart could serve as a springboard for XRP to rise, possibly targeting the $0.57 and $0.60 levels. Given that XRP has been unable to sustain recent gains above the $0.60 mark, there is a strong risk of a downside. The failure to break above this key resistance level last month led to a sharp decline, which suggests that the market lacks strong buying support.
If XRP fails to sustain above the $0.52 support and falls further towards the $0.50 or even $0.45 range, bearish sentiment may take over. Moreover, the chart's relative strength index (RSI), a measure of trader indecision, is currently in neutral territory. If the RSI moves into the oversold territory, the price may come under more pressure and see a bigger sell-off. The wedge pattern and the contracting price range suggest an impending breakout. If the positive momentum returns and XRP is able to close above $0.55 in the coming days, traders may see a strong move up to $0.60 or higher.
In simple terms
As whales continue to increase their holdings, XRP is currently struggling to break through key resistance levels, with its 50-day and 200-day moving averages at $0.56 and $0.54, respectively. However, the surge in the number of XRP inflows into exchanges has brought the market into a state of equilibrium. If positive momentum returns and XRP is able to close above $0.55 in the next few days, traders may see a strong rise to $0.60 or higher.
