XRP witnessed a remarkable increase of 34.15% on March 2, following a pivotal announcement from U.S. President Donald Trump about XRP’s inclusion in the country’s digital reserves. However, this surge was short-lived, with the price rapidly declining the next day, erasing nearly half of its gains. This volatility has raised alarms among market watchers who are paying close attention to the unfolding situation.
What Do Large Wallets Indicate?
The XRP market is currently experiencing substantial transaction volumes, with notable selling activities reported by trader Ki-Young Ju from significant wallets. XRP’s trading activity is oscillating between the $2 and $3 range, but the predominant sentiment reflects a strong selling pressure rather than buying interest.
Are Technical Levels at Risk?
Despite recent gains, XRP is trading approximately 30% lower than its all-time highs. Analyst Dom highlights that the price has struggled to maintain the critical $2.70 support level, and failure to hold above this mark could lead to further selling pressure. Additionally, Dami DeFi raised concerns about the sustainability of the current price increase, citing data that suggests a significant wave of selling from major stakeholders.
– Major wallets are indicating a trend of profit-taking at peak prices.
– Current trading volumes, while high, are skewed towards selling.
– Critical support levels, particularly around $2.70, are under pressure.
– Increased reserves on exchanges like Binance may signal position closures by investors.
The present state of the XRP market calls for strategic caution as technical indicators lean towards a selling bias, marking a crucial phase for decision-making among traders.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/is-xrp-facing-major-selling-pressures