- Ripple price declined around 23% after facing rejection in the resistance zone.
- XRP price has been under buying pressure in the major support zone.
- XRP whales have offloaded 81 Million to exchange.
Ripple (XRP) price has witnessed a massive bull run in November. However, this trend was interrupted near the $2.8 level and underwent a correction phase. Amid this correction, the XRP USD surpassed this resistance zone but failed to continue.
Recently, the token has faced resistance from the $2.8 level and has experienced selling pressure. Amid this fall, XRP price reached the support level of $2 and bounced back. XRP whales have transferred 81 million to exchange, which might cause a bearish move.
Ripple Whale Transfers Trigger XRP Price Drop and Market Uncertainty
Moving ahead, XRP USD has dropped due to massive cryptocurrency transfers to trading platforms by large holders. According to on-chain data, the whales recently transferred over 81 million XRP tokens to trading exchanges.
These transactions ultimately increase the asset supply while decreasing the market price. This is because they demonstrate selling behavior.
Investors are concerned about Ripple whale transfers because they massively impact market sentiment. Historically, significant purchases have resulted in market volatility.
The current downward market trend has made the short-term performance of the XRP price more uncertain.
XRP Price Hovering in a Parallel Channel: Breakout Ahead?
XRP USD was trading at $2.29 at press time, dropping by around $ 1$ over the past 24 hours. The market capitalization was $133 Billion, and the 24-hour trading volume was $11.24 Billion.
Looking at the chart, XRP was stuck in a parallel channel. It followed the $2.8 level as a resistance level and $2 as a support level.
Recently, buyers have shown interest in the support zone of $2 and pushed the price by 13% in a few hours. Amid this buying pressure, the token has formed a hammer candlestick, which is a bullish signal.
Suppose this hammer candlestick attracts buyers; the XRP price might extend to the resistance level of $2.8. Buyers might be confident once it triggers a breakout from the 2.8 mark.
Strong bullish momentum can be anticipated if the price holds over the $2.8 mark. Bullish momentum over the $2.8 mark could lead to a new all-time high.
On the other hand, buyers might panic if the digital asset price dives below the $2 level. Losing this level could convince buyers that sellers have taken over the trend. Here, most buyers might prefer to book profit, which might generate a bearish trend.
Ripple Price Analysis Amid Correction Phase and Whale Activity
XRP USD was at a critical juncture as it struggled to maintain support at the $2 level. This followed a significant decline from the $2.8 resistance. Recent large sell-offs by XRP whales have heightened market volatility, raising concerns among investors.
A bullish hammer candlestick formation indicated a buying interest at the $2 support zone. However, XRP price remained uncertain. A successful breakout above $2.8 could signal strong bullish momentum and potential new highs.
Conversely, dropping below $2 may trigger panic selling, establishing a bearish trend. The upcoming price movements will largely depend on market sentiment and the ability to hold key support levels. Whales have also started offloading XRP, which could bring fear among buyers.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
