- Ripple’s XRP faces a potential whale sell-off on Binance.
- The OG altcoin slumped below $0.60 since April 12, 2024.
- Crypto analysts draw attention to 2 key resistance levels.
Last weekend, the cryptosphere experienced one of the worst dips since FTX’s crash in November 2022. As the King Crypto, Bitcoin (BTC), slumped below $60,000 for the first time since February 28, 2024, this rapid downturn didn’t bode well on major-cap alternative cryptocurrencies, such as Ripple (XRP).
Investors On Edge As Whales Cash Out
The industry heavyweights at Ripple locked 800 million XRP tokens on escrow in alliance with Ripple’s Escrow Strategy, which is set to unlock 1 billion XRP coins monthly. As the creators of XRP are doing their part to maintain XRP’s stability, other crypto whales have been spotted pouring millions of XRP into centralized exchanges, mostly Binance.
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One whale injected Binance with a whopping 21,573,761 XRP coins at 6 AM UTC on May 2, 2024, when XRP’s price was hovering around $0.51. While XRP managed to keep above the claimed $0.50 support levels, its way up is met with multiple obstacles, as pouring huge amounts of XRP into exchanges usually hints at distribution.
Another 21,374,833 XRP deposit to Binance was spotted 22 minutes later than the initial one, totaling the potential XRP sell-off on Binance to $21.6 million at stamped transaction time. Despite these two hefty whale transactions insinuating a likely sell-off, XRP made 4.5% gains in Thursday’s mini-rebound rally. As of press time, XRP trades at $0.5163 after getting rejected at $0.52 half an hour ago.
Key On-Chain Signs to Watch Out for
After last March’s run to $0.73, Ripple had a rough month to slide to $0.44, 2024’s lowest point so far. This dip on April 14 was later followed by a run to $0.565 on April 23 but XRP’s long-term price target of $0.60 hasn’t been touched since April 12, 2024. This raises the question of whether the veteran altcoin has enough strength to restore the $0.60 price target, where DailyCoin employed multiple key on-chain signals to give us a direction.
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Firstly, the Bollinger Bands have exercised a short squeeze on XRP’s daily charts. This technical pattern suggests that the tight Bollinger Bands tend to indicate a price consolidation phase instead of the widening Bollinger Bands hinting at price fluctuations. The Relative Strength Index (RSI) pointed to 44, signaling a neutral position among buyers and sellers.
The combined Spot market liquidity books further confirm this, as bids for XRP have piled up to $119.83 million compared to $105.42 million in sales in the latest 24-hour timeframe, according to CoinPaprika. As for XRP’s $0.60 goal and above, traders highlight $0.53082 and $0.58870 as the next key resistance levels to observe.
On the Flipside
- The current XRP price range puts XRP 85% away from its all-time high of $3.40, claimed on January 7, 2018.
- The altcoin’s price movement heavily depends on the developments in the high-profile SEC vs. Ripple case.
Why This Matters
XRP is a popular choice among long-term cryptocurrency investors due to its longevity and stability compared to its major-cap altcoin peers.
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