XRP’s $299M question: Are whales betting big on a rally?

  • XRP remains sluggish with a mixed derivatives market, waning trader interest, and declining social volume.
  • Whales remain very interested in XRP as they acquire $299million worth of tokens in 24 hours.

Ripple [XRP] has continued with its sluggish performance, making no moves over the past week.

The crypto community and whales, in general, have always valued XRP, but as time goes on, it becomes increasingly difficult to see it being one of the top performers of this bull cycle.

XRP shows mixed signals

The XRP derivatives market is presenting a mixed but interesting picture. Despite the token’s somewhat stagnant price movement, the trading volume has surged dramatically, showing a spike in trader activity and interest. 

Screenshot 2024 06 03 at 11.41.16

Source: Coinglass

However, this hasn’t translated into a similar rise in open interest. So, while transactions are frequent, they may not be resulting in new or sustained positions, possibly due to traders being quick to take profits or cut losses amid uncertainty.

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Source: Coinglass

Moreover, data from Whale Alert revealed that whales are, as usual, stacking up on XRP. In just twenty-four hours, they acquired nearly $300m in XRP. 

XRP’s general trend shows a decline in social engagement, which might mirror the current lackluster performance.

The crypto community’s waning interest, as reflected in declining social volumes, could be a response to its ongoing performance issues, indicating a cooling off in investor sentiment towards the Ripple token.

XRP Ledger XRP 11.59.12 03 Jun 2024 1XRP Ledger XRP 11.59.12 03 Jun 2024 1

Source: Santiment

The XRP chart, however, shows us a clear bearish sentiment among traders. The price has recently been oscillating just below the significant moving average lines, which are converging around $0.5162, suggesting a potential area of resistance.

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Source: TradingView

The RSI, currently hovering around 53.34, supports this bearish outlook, indicating a state of equilibrium where buying and selling pressures are somewhat balanced. 

Given the subdued trading volume, the token appears to be consolidating within a narrow range, awaiting either a catalyst to spark a breakout or a further breakdown.

Read Ripple’s [XRP] Price Prediction 2024-2025

For short-term traders, the key levels to watch would be the resistance at the moving averages and support around $0.5162.

A decisive break below this support could confirm a bearish trajectory for XRP, whereas a push above the moving averages will signal a move toward a more bullish market sentiment.

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