XRP Price News: Exchange Inflows Spike as Whales Load Up to Sell at $1.55
Cryptocurrencies Fluctuate with XRP Leading the Way
XRP (XRP) has plummeted by 12% in the past 7 days as market sentiment continues to be sour following President Trump’s nomination of Kevin Warsh for the top seat at the Federal Reserve. The native asset of the XRP Ledger currently sits at $1.40 and has found strong resistance at $1.45 since the beginning of the Asian session on late Sunday.
Whales Seem to be Getting Ready to Keep Dumping XRP
Data from Santiment shows that XRP’s exchange inflows have been spiking since the beginning of February. The 30-day moving average for this particular metric has spiked from 6.6 million tokens to a peak of 10.7 million for a 62% increase during the first 7 days of the month. Exchange inflows indicate that tokens have been moved from cold wallets to exchange wallets, as the latter are the most liquid alternative.
- Historically, these spikes have been followed by a continuation of the prevailing trend, which, in this case, is a heavy downtrend.
- The tipping point and a potential confirmation of this sell signal would come if the selling pressure accelerates after XRP recovers a bit.
- This pattern played out in October and November last year.
Oversold RSI Favors Technical Bounce to $1.55
The $1.55 level seems to be the key area to watch right now. A heavily oversold Relative Strength Index (RSI), currently sitting at 17, favors a technical bounce for the token. This could be exactly what whales are expecting right now – a “dead cat bounce” to keep dumping XRP.
- A short position above $1.55 could yield the best result if this thesis plays out as expected.
- The market may retest this area to find the necessary liquidity to trigger the next leg down for the token.
- If that happens, we could see XRP dropping back to $1.15 once again.
Economic Data Releases Drive Volatility Higher.
Wednesday and Friday will be important days for the market as jobs and inflation data from January will be released, potentially setting the stage for a big move in the price of cryptocurrencies.
Lower than expected inflation favors a bullish outlook for this asset class despite the latest wave of selling, as it could prompt the Fed to cut rates sooner than expected, especially if the economy is performing well.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.