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- The cumulative increase pushed XRP to $0.63.
- As buying pressure wanes, XRP may fall to $0.60 and force some liquidations.
Ripple (XRP) According to AMBCrypto, addresses holding between 100,000 and 10 million tokens have accumulated $6 million worth of cryptocurrency over the past seven days. analyze Data from Santiment.
As a result, the supply owned by this cohort has increased. For example, the 100,000-1 million group held 11.39% of the total XRP supply at press time, while the 1-10 million group owned 6.31%.
Source: Santiment
XRP reacts
By reducing the number of tokens available for purchase on the market, whales can put upward pressure on the price. Additionally, accumulating large amounts of cryptocurrency can result in high volatility.
In the case of XRP, there are signs that the cryptocurrency is ready for a parabolic move. At press time, the token was worth $0.63. This follows a 2.29% increase in the price over the last 24 hours.
As shown on the H4 chart, XRP consolidated from November 25th until press time. During this period, the price moved between $0.61 and $0.62. However, the increase in whale trading appears to have had an impact on volatility, with a sharp green candle suddenly appearing.
However, Bollinger Bands (BB) have shown that XRP’s volatility is not extreme enough to cause large price movements. At press time, both the lower and upper bands of the indicator had contracted.
Source: TradingView
However, at the same time, the Relative Strength Index (RSI) value increased to 63.09. This increase suggests that buying momentum is returning. Therefore, the possibility of XRP stomach It cannot be ruled out in the short term.
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AMBCrypto also examined the liquidation levels of XRP shown in HyblockCapital’s data. Liquidation level is the potential price level at which liquidation of a trader’s position may occur.
At press time, cumulative liquidation level delta (CLLD) showed that there were more long positions than short positions.
This means more traders are betting on an XRP price increase rather than a slide. However, the possibility of a full retracement appeared, as indicated by the positive CLLD. If a retracement occurs, traders with entries around $0.60 may be liquidated.
Source: HyblockCapital
Another indicator that can influence XRP price movements is open interest. Open Interest is the number of open contracts remaining at a specific point in time. Increasing open interest means there are more traders attempting to open interest. capitalize The movement of assets for potential profit.
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However, a decrease means an increase in liquidated positions. As of this writing, XRP’s open interest has decreased. Open interest shows a weak upward movement compared to price movement.
Source: Coinglass
Therefore, there is a possibility that XRP may fall to $0.61. However, if the buying momentum continues, the token may defy the odds and move towards $0.65.