Ripple (XRP) is facing a bearish risk as investor sentiment shifts and whales start to sell. Other major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are also seeing significant price declines.
XRP Exchange Reserve Increase
Data from CryptoQuant, an on-chain data analytics firm, shows that large investors and financial institutions are continuing to dump their XRP holdings on exchanges. According to the data, Binance’s reserves have increased by 135 million XRP, or $72.63 million, over the past seven days. This increase in exchange reserves is often seen as a bearish signal for XRP holders.
Additionally, large investors have transferred 49.6 million tokens to Bitso and Bitstamp exchanges in the past 24 hours alone, a move that suggests a potential sell-off or staking by large investors.
Why is XRP falling?
The recent appeal by the U.S. Securities and Exchange Commission (SEC) in its lawsuit against Ripple, along with rising tensions between Iran and Israel, may explain the XRP sell-off. At press time, XRP is trading around $0.52 and has gained 2.7% over the past 24 hours.
However, trading volume dropped by 50%, indicating that investor and trader participation is declining, possibly due to concerns that prices could continue to fall.
XRP Technical Analysis and Upcoming Price Levels
According to technical analysis, XRP is in a bearish trend after breaking the key support level at $0.553 and is trading below the 200 exponential moving average (EMA) on the daily time frame. This decline coupled with on-chain indicators suggests that XRP price could drop to $0.48 in the coming days.
The bearish sentiment is further reinforced by the fact that XRP’s long/short ratio is currently at 0.94, indicating that traders’ market sentiment is tilted to the downside. Additionally, XRP’s open interest has dropped by 2.3% in the past 24 hours, indicating that traders are liquidating their positions or are hesitant to open new positions due to market uncertainty.
Combining on-chain indicators, technical analysis, and large investor activity, it can be seen that sellers are dominating the XRP market, and the price is likely to continue to decline in the near future.
