XRP News Today: Whales Buy $630M XRP as Price Breaks Out—But Profit-Takers Lurk

XRP whales have recently accumulated approximately $630 million worth of the asset since September 3, contributing to a price stabilization above $2.85. This buying activity primarily involved two major holder groups, with the first holding at least 1 billion XRP and the second between 10 million and 100 million, increasing their balances by roughly 29 million and 15 million XRP respectively, translating to an additional $630 million in holdings at current prices [1]. This movement appears to have supported the XRP price as it moved above a key resistance level that had previously acted as a barrier to upward momentum [1].

Despite the bullish actions by whales, the overall market dynamics remain cautious. As of September 7, 93.4% of XRP holders were in profit, up from 85.6% on September 1, indicating a significant portion of the holder base is potentially inclined to sell for profit-taking [1]. Additionally, the HODL Waves data reveals a reduction in holdings for both three-to-six-month and short-term holders, suggesting ongoing selling pressure from smaller investors who have liquidated positions during the recent price rebound [1]. These factors contribute to a scenario where price appreciation is being tempered by continued selling activity.

From a technical standpoint, XRP's price currently trades near $2.88, having broken out of a bearish descending triangle pattern that had been in place for weeks. This breakout, which occurred above $2.85, signals a shift in momentum but does not yet confirm a fully bullish trend. Analysts note that holding above $2.85 and $2.69 is crucial for maintaining the three-month uptrend. A sustained move beyond $3.35 would be necessary to fully flip the structure into a bullish trajectory [1]. However, if the price dips below $2.69, it could invalidate the recent bullish interpretation and reignite bearish concerns.

Market sentiment has also been influenced by broader speculative factors. On September 7, XRP rose 3%, becoming one of the top performers among major cryptocurrencies, partly due to anticipation of potential ETF approvals by the SEC around October 18 [3]. This speculative demand was reflected in a 10.3% drop in trading volume despite the price increase, indicating that the rally was driven more by leveraged speculation than by broad market participation. Futures data also showed a 17% rise in trading volume and a 3% increase in open interest, reinforcing the speculative nature of the current price movement [3].

On the flip side, the XRP price faces potential headwinds, particularly from the elevated Network Value to Transactions (NVT) ratio, which hit a two-month high, signaling possible overvaluation. This metric, when it spikes, often indicates that accumulation is slowing down in the short term [4]. While the overall sentiment remains bullish, the high NVT ratio could temporarily hinder XRP's price trajectory. Additionally, any weakening in speculative demand or macroeconomic negative catalysts could trigger leveraged liquidations, dragging the price down to key support levels around $2.70 or even lower [3].

Source:

[1] XRP Price Whales Buy Risk Remains (https://beincrypto.com/xrp-price-whales-buy-risk-remains/)

[2] Binance Dumps XRP, Whales Strike Back With Billion-Dollar Buy (https://finance.yahoo.com/news/binance-dumps-xrp-whales-strike-094721979.html)

[3] Ripple (XRP) Price Moves Toward $3 as Community... (https://finance.yahoo.com/news/ripple-xrp-price-moves-toward-215804400.html)

[4] XRP Price Receives Major Bullish Indicator After Record Buy (https://beincrypto.com/xrp-price-two-year-high-accumulation/)