Ripple’s native token, XRP, is currently exhibiting bearish tendencies and seems poised for a price decline. This negative sentiment is largely driven by the movement of millions of XRP tokens to centralized exchanges by crypto whales. Over the past three weeks, XRP has been in a consolidation phase, during which a substantial 23.5 million tokens, valued at $13.63 million, have been transferred to exchanges, according to data from the on-chain analytics firm CryptoQuant.
XRP’s Exchanges Reserve Soars
It appears that whales are losing interest in XRP, which may create a negative impact on its price. According to CryptoQuant data, during the period of XRP’s consolidation, the exchanges reserve has been continuously rising, which is a negative sign. When crypto whales or institutions move their holdings to exchanges, it is often considered a sign of a potential sell-off.
Current Price Momentum
At the time of writing, XRP is trading near $0.585 and has experienced a price decline of over 1% in the past 24 hours. During the same period, its trading volume has increased by 3%, indicating higher participation from traders amid ongoing consolidation.
XRP Technical Analysis and Upcoming Levels
According to CoinPedia’s technical analysis, XRP is in an uptrend as it trades above the 200 Exponential Moving Average (EMA) on a daily time frame. The 200 EMA is a technical indicator that traders and investors use to determine whether an asset is in an uptrend or downtrend.
Additionally, XRP is in a consolidation zone between the $0.56 and $0.598 levels. A breakout from this zone on either side will provide a clearer picture of whether it will rally to the upside or crash.
When Will XRP Rally?
Based on historical price momentum, if XRP breaks out of this zone and closes a daily candle above the $0.60 level, there is a strong possibility it could soar by 20% to reach the $0.72 level. Conversely, if it breaks down the zone and closes a daily candle below the $0.545 level, a price crash of over 14% could occur.
Currently, XRP’s open interest remains stable with no major changes observed in the last 24 hours, indicating that traders are waiting for a consolidation breakout.
