A huge Ripple [XRP] transfer, worth $17.4 million, has been withdrawn from Upbit, leading many to speculate about a bullish wave.
As trading volume spikes, traders are closely watching the whale's movements, eagerly waiting to see if the momentum will continue.
It remains unclear whether XRP can sustain enough pressure to break above key resistance levels and trigger a potential breakout.
Can XRP Break Out of the Market?
XRP is trading at $0.5861, down 1.63% at the time of writing. However, despite this slight decline, increased whale activity and increased trading volume have many in the market hopeful for a recovery.
Over the past 24 hours, active addresses have increased by 1.21%, totaling 10,347 addresses at the time of writing.
This shows that more participants are trading on the XRP Ledger, which is usually associated with increased demand.
Furthermore, the number of transactions on XRP Ledger is also on the rise, with a 0.72% increase over the past 24 hours, reaching a total of 1.388 million, according to CryptoQuant.
This increase in transactions further signals increased network activity, which is usually a positive sign for price action.
Decreased supply on the exchange, a positive sign?
Another important factor driving the bullish sentiment is the decline in exchange reserves. At the time of writing, the XRP supply on exchanges has decreased by 0.29% over the past 24 hours, leaving 2.9769 billion XRP.
A decrease in exchange reserves often indicates a decrease in selling pressure as more tokens are withdrawn from exchanges and moved to personal wallets.
This trend could indicate that investors are anticipating a price increase, resulting in a decrease in supply available for immediate trading.
Liquidation Activity: What Does It Mean for the Future of XRP?
Looking at XRP liquidation data, there is notable activity on both long and short positions.
September 23 saw a total of $579,009 in liquidations, with the majority being short positions ($61,000) on exchanges like Binance and OKX.
In contrast, long positions reached over $362,000. This shows that despite short-term fluctuations, there is strong support from long-term traders, which could help the price move higher.
Can XRP Maintain Its Growth Momentum?
Although XRP has experienced a bit of a price drop, increased whale activity, growing network participation, and decreasing exchange reserves are showing a positive outlook.
If these trends continue, XRP could maintain its bullish momentum and potentially break above key resistance levels.
Traders should be cautious, however, as sustained buying pressure is needed for a breakout to occur.
The coming days will reveal whether this whale activity is the spark needed for a sustained price rally.
