XRP Price Analysis: Will Whale Activity and CMF Indicators Decide Its Next Move?
If you’ve been keeping an eye on the cryptocurrency market, you might have noticed that XRP’s price has been stuck in a consolidation phase over the past month, with a modest 2.2% growth in the last 30 days. Despite forming a golden cross earlier this month, which typically signals bullish momentum, whale activity suggests a lack of accumulation, which could weigh on further price gains.
The Role of Whale Activity in XRP’s Price Movement
Whale activity is a crucial factor in understanding the market sentiment of a cryptocurrency. In the case of XRP, the number of whales holding between 10 million and 100 million XRP has dropped to 296, the lowest level since December 24. This marks a significant shift in whale activity, as their numbers had previously reached a month-high of 305 on December 7, coinciding with XRP’s price exceeding $2.50.
What Does This Mean for XRP’s Price?
The recent decline in whale numbers suggests a bearish sentiment among major investors, which could weigh on XRP’s price in the short term. Unless whale activity stabilizes or reverses toward accumulation, XRP may struggle to regain upward momentum. This is because whales can significantly influence the market, and their accumulation typically signals confidence in a coin, driving prices higher.
XRP’s Chaikin Money Flow (CMF) Remains Positive
On a more positive note, XRP’s Chaikin Money Flow (CMF) is currently at 0.28, maintaining a positive position since January 1. The CMF has shown an upward trend in the new year, signaling increasing capital inflows as buying pressure outweighs selling pressure. This positive CMF reflects growing investor confidence and suggests that XRP is attracting interest from market participants.
XRP Price Prediction: A Potential 19.6% Correction
XRP’s price is currently trading in a tight range, between $2.53 resistance and $2.33 support. While the formation of a golden cross on January 1 fueled the recent price surge, signaling strong bullish momentum, indicators like declining whale accumulation and a slight dip in the CMF suggest that the current uptrend may be losing strength.
If the support at $2.33 fails to hold, XRP’s price could face increased selling pressure, leading to a decline toward $2.13. A break below this level could push the price further down to $1.96, marking a potential 19.6% correction.
On the other hand, if the uptrend regains traction and XRP’s price breaks above the $2.53 resistance, it could target $2.72 next, offering a potential 10.6% upside.
What’s Next for XRP?
As we can see, XRP’s next moves will heavily depend on whether it breaks above its $2.53 resistance or succumbs to bearish pressures near its $2.33 support. With whale activity and CMF indicators playing a crucial role in determining the market sentiment, it’s essential to keep a close eye on these indicators to predict XRP’s future price movements.
What do you think will happen to XRP’s price in the short term? Share your thoughts in the comments below!
Source: Beincrypto.com
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