Recent price action indicates a possible bearish breakout of a triangle pattern, lower volatility, and increased selling pressure.
Two substantial XRP transactions were recently observed, indicating a notable shift in the distribution of XRP tokens on trading platforms. These transactions, totaling 44,500,000 XRP, caught the attention of market watchers and sparked debates about their potential impact on the market.
Whale Movements in the XRP Ecosystem
Whale Alert reported on these two major movements. The first transaction involved the movement of 20,000,000 XRP, valued at around $13,044,810 at the time of transfer. This significant sum originated from the Bitvavo Exchange and was sent to a wallet that, despite not being registered, has been active since June 16.
The second, even larger transaction consisted of 24,500,000 XRP, equivalent to approximately $15,312,871. This transfer was initiated from a wallet activated by Ripple Labs in January. The wallet history reveals a pattern of transferring funds primarily to exchanges like Bitstamp and Bitso, indicating a strategic approach to these moves.
XRP Market Performance and Future Prospects
XRP price was $0.6477, showing signs of fluctuation. Recent price action indicates a possible bearish breakout of a triangle pattern, lower volatility, and increased selling pressure. If this trend continues, XRP value could fall below its 25-day EMA of $0.6070 and possibly even further to $0.5800, dampening hopes for an increase.
On the contrary, an increase in buying momentum could rejuvenate the price, potentially pushing it up. above the $0.6500 mark, lining up with the lower trend line of the triangle. Such a change could pave the way for XRP to reach heights of around $0.7500. The fight between bullish and bearish forces will intensify around the 20-day EMA mark ($0.6200).
If the price stabilizes below this level, a consolidation phase between $0.5600 and $0.7400 is likely. However, if the bulls gain the upper hand and push the price above $0.7400, a more significant rally could be on the horizon, potentially reaching as high as $0.9000 and then targeting the $1 level.
Will XRP Turn Bullish Soon?
XRP has a short-term bearish bias. A drop below $0.6 was possible, but would give swing traders the opportunity to go long. Ripple [XRP] prices rose to $0.75 on November 13 after fake news about an XRP exchange-traded fund (ETF) circulated on social media platform X (formerly Twitter).
Furthermore, market watchers noted that news about altcoin ETFs would remain far-fetched in the coming years. Technical analysis conducted on November 7 showed that $0.715 was a critical resistance level. While XRP tested this level and even briefly surpassed it on Monday, the bulls were unable to convert it into support.
The one-day chart showed that the market structure has changed in a bearish manner. XRP set a higher low of $0.63 on November 9, but its fall below this mark on November 14 meant that the bears are now in control.
However, the sellers were not dominant and a downtrend had not started on the OBV. Fibonacci retracement levels showed the 61.8% and 78.6% interest rates settled at $0.572 and $0.528. $0.585 was also a support level based on late October price action. Therefore, a move to the $0.528-$0.585 region would give buyers a chance to regain control. On the other hand, a move below $0.528 would mean that a downtrend is likely in play.
By Leonardo Perez
