Whale sell-offs threaten XRP’s rally despite bullish forecasts

  • XRP was trading within a symmetrical triangle at press time.
  • Nonetheless, whales were applying downward pressure through considerable sell-offs, which, in turn, could affect retail investors.

While there is a glimmer of hope—marked by a slight 0.92% gain in the most recent daily trading session—the overall indicators suggest that XRP is not yet ready for the much-anticipated surge. 

This lack of momentum is evident in its recent declines of 5.93% monthly and 2.79% weekly, as XRP bounced off the upper resistance boundary of the triangle pattern.

More signs of a rally surfaces

XRP has formed a symmetrical triangle on the weekly chart, signaling a potential surge. This pattern is often interpreted as a bullish indicator, suggesting a possible upward market shift as selling pressure diminishes.

Adding to this bullish sentiment on the chart is the Chaikin Money Flow, which measures the volume-weighted average of accumulation and distribution over a specified period. 

It showed that XRP was being accumulated at press time, as it headed for the positive zone. 

Source: TradingView

However, the formation of a symmetrical triangle is not the sole bullish signal. Further analysis revealed that retail investors were actively contributing to the likelihood of a rally. 

Retailers are a major force for XRP’s rally 

Retail investors are demonstrating significant confidence in XRP, as evidenced by positive trends in both the Funding Rate and Open Interest across various exchanges, according to data from Coinglass.

A positive Funding Rate indicated that traders in long positions were paying a fee to those in short positions.

This scenario typically suggests that the Futures contract price is exceeding the spot price, highlighting strong demand for long positions.

Source: Coinglass

Moreover, the Open Interest has shown a positive uptick, with a notable 1.15% increase in the past 24 hours.

This trend indicated that an increasing number of traders were initiating long positions, though some contracts remained unsettled.

Despite the apparent readiness for an upward move, there is a risk of a decline.

Market dynamics indicated that larger investors, often referred to as “whales,” are reducing their positions, and there is a noticeable trend of liquidations among long traders.

Whale withdrawal is a potential sell-off sign

According to Lookonchain, several large investors, or whales, were transferring substantial amounts of XRP from private wallets to exchange wallets. 

This shift typically indicates an intention to sell, as loading exchange wallets with increased volumes of a cryptocurrency often precedes a market sell-off, potentially driving prices lower.

Recent transactions underline this trend. One whale moved 28,000,000 XRP, valued at $14,985,739, to the Bitso exchange. Another notable transaction involved the transfer of 18,820,000 XRP, worth $10,113,389, to Bitstamp.


Read XRP’s Price Prediction 2024–2025


Should these sell-offs proceed, it is likely that XRP could retreat to the support level of the symmetrical triangle, a zone where previous buying pressure has been high. 

However, if this support level fails, a further decline in XRP’s price could occur.

Next: Bitcoin remains stuck in bear phase: Will BTC breakout soon?

Source: https://ambcrypto.com/whale-sell-offs-threaten-xrps-rally-despite-bullish-forecasts/