In the last few days, there has been a noticeable upward surge in the price of cryptocurrencies. However, Ripple’s native coin, XRP, continued to consolidate during this upswing.
Whale Shifts 52 Million XRP to New Wallet
The blockchain-based transaction tracker Whale Alert announced on X (formerly Twitter) on October 21, 2024, that a crypto whale had removed a sizable 52 million XRP tokens, valued at $28.67 million, from the ByBit cryptocurrency exchange.
This staggering token withdrawal following the breakout has changed the XRP market sentiment from a downtrend to an upswing.
XRP Analysis; What Next For the Coin?
Expert technical analysis indicates that XRP is bullish because it recently broke out of a protracted consolidation phase. It’s unclear whether the rally will continue despite this significant breakthrough.
If XRP finishes its daily candle above the $0.578 level, there’s a good chance the token will rise by 20% to reach the $0.67 level in the upcoming days, according to past price momentum and recent price activity. But XRP’s bullish forecast could not hold up if it doesn’t close its daily candle above the $0.578 mark.
XRP On-chain Statistics
The positive outlook for XRP is further reinforced by on-chain indicators. The on-chain analytics company CoinGlass reports that XRP’s long/short ratio is at 0.99, which suggests that traders are not very strong. On the other hand, its open interest has increased consistently and has increased by 3.9%. An increase in open interest indicates that traders are accumulating fresh positions.
As of right now, traders are over-leveraged at the significant liquidation levels, which are $0.537 on the lower side and $0.561 on the upper side, according to Coinglass.
XRP is currently trading close to $0.544 after seeing a gain of more than 2.5% on the previous day. Its trading volume increased by 117% in the same time frame, suggesting increased involvement from traders and investors in comparison to the day before, which is encouraging for XRP holders.
Conclusion
XRP’s recent consolidation amid a broader cryptocurrency upswing, coupled with a notable whale transaction of 52 million tokens, signals a potential shift in market sentiment for Ripple’s coin. The technical analysis suggests a bullish outlook, with XRP needing to close above the $0.578 level to confirm a further 20% rally towards $0.67. However, if it fails to break that level, the positive momentum may stall.
On-chain data showing increased open interest and trading volume further strengthens the case for a potential breakout, but the cautious long/short ratio indicates that traders remain hesitant.
