Ripple’s native token XRP is on the verge of a price drop as whales dump millions of XRP tokens as the price retests the $0.545 breakout level. On September 12, 2024, transaction tracker Whale Alert posted a message on X (formerly Twitter) that Ripple whales sold 39.32 million XRP tokens, worth $21.13 million, to Bitstamp.
Recent Action by Ripple Whales
This XRP dump by whales has made the overall sentiment more pessimistic as this came as the price retested its $0.545 breakout level.
At the time of writing, XRP is trading around $0.535 and has experienced a price drop of over 1.12% in the past 24 hours. Meanwhile, the trading volume has increased by 25% in the same period, indicating higher participation from traders despite the price drop.
XRP Price Prediction
Expert technical analysis warns that XRP appears bearish as it is trading below the 200 Exponential Moving Average (EMA) on a daily timeframe. Currently, it is receiving significant support at the $0.531 level. If XRP fails to hold this support level, there is a high chance that it could drop by 10% towards the $0.475 level.
Moreover, XRP’s Relative Strength Index (RSI) is in oversold territory, indicating a possible price reversal.
Key Liquidation Levels
According to Coinglass, the main liquidation areas currently lie around the $0.521 level on the downside and $0.543 on the upside as traders are overleveraged at these levels.
If sentiment remains bearish and the XRP price drops to the $0.521 level, long positions worth nearly $11.04 million will be liquidated. Conversely, if sentiment shifts and the price rises to $0.543, short positions worth about $7.07 million will be liquidated.
Coinglass’ XRP Long/Short ratio data shows that over the past four hours, 53.64% of top XRP traders have taken short positions, while 46.36% have taken long positions.
Combining all these data, it seems that bears have control over the asset and may increase selling pressure.
