Key Takeaways:
Ripple whales moved 483 million XRP tokens.
XRP price dropped over 8% since Aug. 30.
The token is moving inside a bullish technical setup.
XRP price plunges as whales dump their tokens Read CoinChapter.com on Google News
NEW DELHI (CoinChapter.com) — Whales moved massive amounts of XRP tokens, resulting in a sell-off that nearly erased all the gains the token made after Ripple won the lawsuit against the US Securities and Exchange Commission.
Crypto transaction tracking service Whale Alert noted the transactions, highlighting that Ripple was also one of the participants in whale transactions. Whale Alert stated that the fintech firm transferred 31 million XRP tokens (worth $16.5 million) to an unknown wallet.
Whales moved more than 424 million XRP tokens.
The crypto transaction tracker also highlighted another transaction. An unknown wallet moved over 424 million XRP tokens to another unknown wallet.
Another crypto wallet moved over 29 million XRP tokens to the crypto exchange Bitstamp.
Whale transactions significantly impact an asset’s price action since several smaller traders follow the direction of whale transactions. Hence, smaller traders follow suit if a whale investor decides to sell their holdings.
XRP Price Moving Inside Bullish Pattern
Meanwhile, XRP price has formed a bullish technical pattern called the ‘Falling Wedge.’
The technical pattern forms when the price fluctuates inside a pair of falling trendlines that converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside.
XRP price formed a bullish technical pattern with a 381% price target. Source: Tradingview.com
One key feature of the pattern is that volumes usually decline as the trendlines converge.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Thus, confirming the pattern could see the XRP price rise nearly 381% to a theoretical price target of $2.5.
XRP Price Drops 8% In Two Days
The XRP token price dropped over 8% since Aug. 30 to reach a daily low of $0.496 on Aug. 31. The token has been crabbing since Aug. 17, struggling to break above the 200-day EMA (green wave) dynamic resistance.
Moreover, news of the SEC losing its lawsuit against Grayscale failed to revive the token.
XRP price has been falling after gaining over 73% on July 13, resulting in the token erasing nearly 47% of the day’s gains in six weeks. However, the long lower wick on the token’s Aug. 31 price candle suggests that bulls have not given up.
XRPUSD daily price chart with RSI. Source: Tradingview.com
Yet, the Ripple crypto token’s price could drop to the support near $0.49 if the selling pressure increases. Moreover, failure of the immediate support level could force the crypto token’s price to fall to the support near $0.45 before recovering.
On the other hand, a bull run would require the XRP price to flip the 20-day EMA (red wave) resistance near $0.55 before targeting the resistance near $0.61.
The RSI for XRP remained neutral, with a score of 34 on the daily charts.
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