Ripple’s native token, XRP, is facing a potential price decline as prominent investors, known as whales, have recently dumped millions of XRP tokens. This significant sell-off comes at a time when XRP’s price is testing the breakdown level of $0.545, raising concerns among traders and investors.
Ripple Whales’ Recent Action
On September 12, 2024, Whale Alert, a well-known transaction tracker, reported on X (formerly Twitter) that Ripple whales have offloaded a staggering 39.32 million XRP tokens, valued at $21.13 million, to Bitstamp. This massive dump has exacerbated the negative sentiment surrounding XRP, especially as it coincides with the price retesting the critical breakdown level of $0.545.
As of the latest data, XRP is trading near $0.535, marking a price drop of over 1.12% in the last 24 hours. Interestingly, the trading volume has surged by 25% during this period, suggesting heightened participation from traders despite the declining price.
XRP Price Prediction
Technical analysis experts have issued warnings about XRP’s bearish outlook. Currently, XRP is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, which is a significant bearish indicator. Despite this, XRP is finding some support at the $0.531 level. If this support fails to hold, the price could potentially drop by 10% to approximately $0.475.
Moreover, XRP’s Relative Strength Index (RSI) is in the oversold territory, indicating a potential price reversal. However, traders should remain cautious as the market sentiment continues to be predominantly bearish.
Major Liquidation Levels
Current analysis reveals that major liquidation levels are situated near $0.521 on the lower side and $0.543 on the upper side. According to Coinglass, traders are heavily leveraged at these levels, which could lead to significant liquidations if prices move drastically.
If the bearish sentiment persists and XRP’s price drops to the $0.521 level, it could result in the liquidation of nearly $11.04 million worth of long positions. Conversely, if the sentiment shifts positively and the price rises to $0.543, approximately $7.07 million worth of short positions could be liquidated.
Coinglass’s XRP Long/Short ratio data indicates that, in the past four hours, 53.64% of top XRP traders have taken short positions, while 46.36% have opted for long positions. This data suggests that bears currently dominate the market and could potentially increase the selling pressure.
In conclusion, the recent actions of Ripple whales and the prevailing market sentiment suggest that XRP may continue to face downward pressure in the short term. Traders and investors should closely monitor key support and resistance levels and stay updated with market trends to make informed decisions.
