XRP Plummets 6% Amid 150 Million Token Transfer, Bears Dominate
1min read XRP, the native token of Ripple Labs, has recently attracted significant attention from crypto enthusiasts due to the transfer of 150 million tokens from unknown wallets. This substantial transaction has sparked curiosity and speculation about its potential impact on XRP's price. The transfer was reported by the whale transaction tracker, which noted the movement of 150 million XRP tokens from an unknown wallet to another unknown wallet.
Currently, XRP is trading near $2.34, experiencing a price drop of over 6% in the past 24 hours. During the same period, its trading volume declined by 15%, indicating lower participation from traders and investors compared to the previous day. This price drop has brought XRP to a crucial support level of $2.30, creating a make-or-break situation for the asset. If XRP manages to hold this level, there is a strong possibility it could soar by 20% to reach $2.79 in the coming days. However, if the price continues to fall and breaches the support level, closing a four-hour candle below $2.24, there is a strong possibility of a 15% decline, bringing the asset down to $1.90 in the future.
At present, XRP is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating a downtrend. Most traders and investors use this indicator to make informed decisions. Besides the make-or-break situation, traders appear to hold a bearish sentiment, strongly betting on a lower price as they believe it won’t rise soon. Data from the XRP exchange liquidation map reveals that traders are over-leveraged at $2.241 on the lower side and $2.6 on the upper side. They have built $46 million worth of long positions and $106 million worth of short positions at these respective levels in the past 24 hours. When combining this on-chain metric with technical analysis, it appears that bears are dominating, and there is a high likelihood that the price will continue to move in a downward trajectory.