XRP could be triggered by significant market movements that could lead to a supply crunch in the short term.$XRP
Recent data shows that whales are withdrawing large amounts of XRP from cryptocurrency exchange Binance. Market expectations are rising, with predictions that XRP could reach $4, after which a new trading range could be established. XRP is facing whale-driven supply dynamics, which could lead to price increases as the consolidation process continues.
According to Whale Alert, XRP has seen a significant outflow from major exchanges like Binance in the last 24 hours. According to tracking data, 800,000 XRP were transferred off the exchange, reaching a value of $1.93 billion. Such large outflows usually signal an upward trend.
Investors moving large amounts of XRP from exchanges to private wallets usually indicate holding rather than selling. Such moves indicate long-term investment strategies, as private wallets are less commonly used for trading. If these outflows continue, a supply crunch could occur, reducing XRP’s liquidity on exchanges and increasing its price.
XRP has been accumulating by fluctuating within a certain price range in recent weeks. The supply squeeze created by whales raises the possibility of a breakout from this stage. If a breakout occurs, XRP could gain approximately 66.44% and reach $4.
This accumulation phase is technically defined as a symmetrical triangle, with the price fluctuating between support and resistance levels. If the breakout does not occur, XRP can be expected to remain in the accumulation phase and price movements can follow a more sideways trend.
When analyzing the short-term trend of XRP, he notes that there is a mixed market sentiment among investors. At the time of writing, XRP’s Open Interest (OI) has decreased by 2.35% in the last 24 hours to $0.35 billion. This decline indicates that short positions have outpaced long positions and indicates downward pressure in the market.
However, the Funding Rate remains in bullish territory at 0.0102%, indicating continued positive market sentiment. While the bullish Funding Rate is in line with market sentiment, it is important that trends in Open Interest need to reverse for XRP to establish a clear market direction.