XRP Whales Dump $34M as Price Surges 11%
1min read XRP, the native token of Ripple Labs, has been experiencing a significant inflow of $34 million onto exchanges in the past 24 hours, according to on-chain analytics firm Coinglass. This substantial inflow signals a potential price drop for the cryptocurrency, as it indicates that long-term holders and whales are dumping their XRP tokens onto exchanges, creating selling pressure.
This bearish move by investors and long-term holders comes after XRP's price surged by 11% in the past 24 hours. The impressive upside momentum has led to a 50% increase in trading volume, indicating rising investor and trader participation. However, the recent price increase may have encouraged these holders to book profits at the current level.
Despite the bearish activity from investors and long-term holders, intraday traders are betting on the bullish side. Data reveals that intraday traders are currently over-leveraged at $2.497 on the lower side and $2.80 on the upper side. Both buyers and sellers have built $143 million worth of long positions and $55 million worth of short positions, suggesting that bulls are currently dominating the asset.
According to expert technical analysis, XRP is currently facing mild resistance near the $2.80 level, which is causing trouble for the asset by creating selling pressure and further price drops. However, if XRP breaches the resistance level and closes a daily candle above the $2.85 level, there is a strong possibility it could soar by 20% to reach the $3.35 level in the coming days.
