Ripple’s XRP token has been making headlines in the cryptocurrency world with its recent surge in value. However, a recent whale transaction involving the movement of 20 million XRP tokens to Upbit, South Korea’s largest crypto exchange, has raised concerns among investors and traders. This significant dump occurred at a time when the overall crypto market was experiencing a correction, causing XRP to struggle.
Following this whale transaction, XRP’s daily chart is showing bearish signs, indicating a potential price correction in the near future. Technical analysis suggests that XRP is forming a bearish evening star candlestick pattern near the $1.40 breakout level. If the altcoin closes below $1.30, it could see a 20% drop to $1.05.
Despite its recent parabolic move, XRP may need to undergo a correction or consolidation phase to sustain its momentum. Currently, the altcoin is trading above the 200 Exponential Moving Average (EMA) on the daily chart, signaling an uptrend. However, the Relative Strength Index (RSI) indicates that XRP is in overbought territory, with limited room for further price gains.
In terms of trader sentiment, data from Coinglass suggests that traders are over-leveraged, with key levels at $1.325 on the lower end and $1.379 on the upper end. The exchange liquidation map shows a concentration of long positions at the lower level and short positions at the upper level, indicating a higher number of sell-side traders.
At the time of writing, XRP is trading around $1.38, with a 7.10% decline in the past 24 hours. The trading volume has also decreased by 30%, suggesting reduced participation from traders and investors. This decline in trading activity could potentially lead to a further price drop in the coming days.
Overall, while XRP has seen significant gains in recent days, the whale transaction and bearish signals on the charts indicate a potential price correction. Traders and investors should closely monitor the market conditions and adjust their strategies accordingly to navigate the volatile crypto landscape.