XRP is starting to recover after bouncing off $0.405 on July 5, suggesting the early stages of a rebound may be brewing. The crypto market has been volatile lately, and XRP hasn’t been spared. The crypto’s price took a dip recently, dropping below $0.40 for the first time in over a year. It is interesting to note that on-chain data suggests that some whales may be accumulating in anticipation of a major comeback, which may even be responsible for the bounce off of $0.40.
XRP Whales Buying The Dip?
Various on-chain data has shown large XRP transactions in the past few weeks to and from exchanges, suggesting some whales might be taking advantage of the dip to accumulate more tokens. Particularly, recent transaction alerts from Whale Alerts on social media platform X noted a recent transfer of 52.1 million XRP tokens worth $22.7 million from crypto exchange Binance into an unknown wallet.
Related Reading
The details of this $22 million XRP transaction are pretty fascinating and transfers like this are worth paying attention to as they can either increase or decrease buying and selling pressure. In this case, the movement away from Binance suggests a decrease in selling pressure on the exchange.
🚨 52,103,936 #XRP (22,713,495 USD) transferred from #Binance to unknown wallethttps://t.co/7TUiD49tYb
— Whale Alert (@whale_alert) July 9, 2024
Interestingly, on-chain data shows that this wasn’t an isolated transaction. Data shows a similar transaction occurred over the weekend, which saw the movement of 31.9 million XRP tokens from Binance into an unknown wallet. At the time of transfer, these tokens were worth $14.22 million. Furthermore, the blockchain analytics engine Blockchain also revealed the transfer of 10 million XRP tokens worth $4.2 million from Binance into another unknown wallet.
What’s Next? Key Levels To Watch
At the time of writing, XRP is trading at $0.434. If the bulls regain control, the first minor resistance is at $0.45 and the next key resistance level to watch is around $0.50. Punching through that could open the floodgates for a rally towards $0.70 or even the $0.80 mark.
Related Reading
To fuel that kind of upside, XRP would need to see a surge in trading volume and buying pressure from both retail and institutional investors. Positive news from Ripple’s ongoing legal battle with the SEC could be a major catalyst. An outright win or settlement would remove a huge cloud of uncertainty hanging over XRP.
On the flip side, if the bears maintain their grip, the first support level to watch is around $0.40. This is because XRP recently bounced off $0.40 after an intense selloff last week. A break below that could see XRP tumble towards another support at $0.3750.
Featured image created with Dall.E, chart from Tradingview.com
Credit: Source link
