Crypto whales are making a comeback in the market, aiming to accumulate as much as possible amidst the current free fall. Coinglass, an on-chain analytics firm, recently disclosed that whales and long-term holders are showing a strong interest in XRP, the native token of Ripple Labs.
A staggering $155 million worth of XRP tokens have been flowing out of exchanges, indicating a significant accumulation phase and signaling a potential buying opportunity for investors. Despite a 16% price drop in the past 24 hours, XRP is currently hovering around the $2.50 mark, attracting a surge of interest from traders and investors, leading to a 210% increase in trading volume.
On the other hand, intraday traders are capitalizing on the market sentiment by heavily shorting XRP tokens. At present, traders are overleveraged at the $2.50 level, with bulls holding $14 million worth of long positions, while short sellers dominate the $2.85 level with $111 million worth of short positions. This imbalance suggests that short sellers could potentially liquidate long positions worth $14 million.
In terms of technical analysis, XRP has breached a crucial support level and is likely to continue its downward trajectory. If XRP fails to hold the $2.55 level, there is a high probability that it could drop by 25% to reach the $1.90 level in the near future.
Overall, the market dynamics for XRP are evolving rapidly, with whales accumulating tokens, traders shorting the asset, and technical indicators pointing towards a potential price decline. Investors should closely monitor these developments and adjust their strategies accordingly to navigate the volatile market conditions effectively.