A significant decline in large-scale sell pressure coupled with positive technical indicators suggests potential upside for XRP price.
Data reveals a substantial 93% drop in XRP transfers from large holders, or ‘whales’, to cryptocurrency exchanges since mid-July. This reduction in whale-to-exchange flows indicates decreased selling pressure, contributing to recent price stability.
The Chaikin Money Flow (CMF) indicator has shown a bullish divergence, signaling increased accumulation of XRP by investors. This divergence typically represents growing buying pressure and can precede upward price movements.
Technically, XRP is approaching a major resistance level at $3.37. A decisive breakout above this price point is seen as a critical trigger, potentially initiating a rally towards $3.62 and $3.83, with an ultimate target near $4.
Market analysts caution that the bullish outlook remains contingent on holding above crucial support at $2.96. A sustained drop below this level would invalidate the current positive structure and likely delay substantial upward momentum.
Recent price action aligns with these observations, with XRP experiencing a 3% increase attributed primarily to the reduction in whale selling and signs of increased accumulation.