XRP, the world’s third-largest cryptocurrency by market capitalization, has been in the spotlight lately due to whale interest and its impressive performance. However, recent whale activity has raised concerns among XRP holders as crypto whales have reportedly dumped nearly a hundred million dollars worth of XRP tokens on the Coinbase cryptocurrency exchange.
On December 13, 2024, Whale Alert, a blockchain-based transaction tracker, revealed that 39.43 million XRP tokens worth $95.5 million were transferred from an unknown wallet to Coinbase. This significant whale activity has sparked speculation about the future price direction of XRP, especially considering the bearish signal it sends despite the overall bullish sentiment surrounding the cryptocurrency.
Furthermore, recent data from Coinglass, an on-chain analytics firm, indicates that XRP has been experiencing substantial outflows from exchanges, with a total of $55 million worth of XRP being moved out in the past 48 hours. This outflow suggests strong interest and confidence from long-term holders, hinting at potential buying opportunities and a possible upside rally for XRP.
In terms of technical analysis, XRP has been trading in a pattern of lower highs and lower lows since the beginning of December 2024. However, the cryptocurrency is currently consolidating near the lower high boundary, indicating a possible end to the bearish trend and a potential bull run in the near future. Analysts suggest that if XRP breaks out of the consolidation zone and closes a four-hour candle above the $2.50 level, it could see a 15% increase to reach the $2.90 level. On the other hand, a breakdown below the $2.30 level could lead to a 15% decline to the $2.00 level.
As of now, XRP is trading near $2.42 with no significant price changes in the last 24 hours. However, the trading volume has dropped by 40%, signaling lower participation from traders and investors following the recent sharp price decline.
In conclusion, while recent whale activity and technical indicators may raise concerns among XRP holders, the overall sentiment remains bullish with the potential for a price rally in the near future. Traders and investors are advised to monitor the market closely and consider the various factors at play before making any investment decisions in XRP.