The cryptocurrency market has seen tremendous activity lately. A big whale transaction caused Ripple (XRP) to tumble by 2%. Holders and analysts raised concerns over the short-term XRP price following a wallet transfer of 105 million coins.
The community is experiencing uncertainty as a result of this whale behavior, with the current value range falling between $0.5405 and $0.5557. Is this a precursor to future volatility or only a transient correction?
Key insights: XRP Price Drops 2% Following Whale Transfer of 105 Million Tokens
A whale just sent 105 million XRP from its wallet, which caused a 2% decline. A transaction of this size typically indicates impending selling pressure, prompting holders to move swiftly.
The current value is slightly less than in the past, between $0.5405 and $0.5557. Since the asset isn’t overbought or oversold, the value might move in any direction in the near future, according to the RSI (Relative Strength Index), which is now at 41.9668.
The news about XRP today adds to the already tense situation in the sector. Such a large wallet transfer may indicate one of two things: either holders are getting ready to sell or they are shifting their focus. In any case, it makes holders wary, which increases selling pressure and lowers the value of the coin.
The Effects of Massive Whale Movements on XRP’s Value and Overall Market Trends
The value of XRP is heavily influenced by whale behavior, more so than bigger cryptocurrencies like Bitcoin. The reason is that XRP has a smaller capitalization than Bitcoin, making it more vulnerable to massive wallet transactions.
Because of the size of the Bitcoin market, a whale transaction does not always result in substantial value swings. On the other hand, the community may respond quickly to even a single whale transfer when using XRP.
Returning to the coin under discussion, some holders are considering the long-term and turning to XRP price prediction models for advice. According to them, the currency may rise toward its resistance level of $0.66508 if it maintains above its support level of $0.44975.
However, if it falls below the support level, investors may become less confident in a speedy recovery, which might drive the price closer to $0.44975. In addition, more transactions are being made on the XRP-USD pair, suggesting that even with the recent decline, there is still demand for the cryptocurrency.
Price Analysis of XRP: Are Ripple Bulls About to Bounce?
The price of XRP dropped by 4.28% on September 6, yet the remittance cryptocurrency is now at a crucial turning point. According to data collected over the last two months, purchasers have shown interest every time Ripple has dropped.
The Relative Strength Index (RSI) has been rising higher during these dips, resulting in higher lows, which supports the optimistic picture. In addition, the lower limit of the annual Volume Weighted Average Price (VWAP) of $0.503 has been crucial in maintaining the price.
If history is any guide, investors can anticipate significant purchasing pressure on the XRP price, followed by a rebound bounce.
If the price of ripples increases, investors should be aware of the following critical levels:
- Annual VWAP at $0.561, matching the level of daily resistance.
- The upper bound of the yearly VWAP is $0.619, which also happens to be the daily resistance zone, which spans from $0.619 to $0.635.
These are the short-term goals, representing gains of 6% and 20% from the current price of XRP at $0.529. The $0.716 barrier is the next objective in a very bullish scenario in which XRP clears the $0.635 barrier and turns it into a support floor.
However, the previously stated optimistic thesis would be refuted if the price of XRP drops below the lower limit of the annual VWAP, which is set at $0.503. The remittance token may drop 6% in response to this news and return to $0.469.
Conclusion
The transfer of 105 million XRP, which caused a 2% decline in Ripple’s value, serves as a stark reminder of the power whale behavior may have in the cryptocurrency space. The initiative still retains its appeal as a quick and affordable way to make cross-border payments in spite of these changes.
Given its potential for growth both before and after the presale, $MTAUR could be a wise addition to your portfolio in the meantime. It has great utility, a sound tokenomics concept, and benefits for holders. But such deals won’t stay forever, so you should move swiftly.
