Should You Sell as Whales Exercise Caution and XRP Price Plunges to a 3-Month Low?
XRP Suffers 5% Drop, Hits Lowest Point in 3 Months
In a surprising turn of events, Ripple’s cryptocurrency, XRP, experienced a significant decline, dropping to $0.50 and recording a 5% decrease within 24 hours. This plunge, the lowest it has been in three months, raises concerns as it threatens the gains made since the mid-October rally.
One of the notable trends in the broader cryptocurrency market is the divestment of XRP by crypto whales, who once considered it a cornerstone of their portfolios. This shift in sentiment can be attributed to regulatory obstacles and the ongoing market correction, which have led investors to adopt a more cautious approach and cast doubts on the future of XRP.
Simultaneously, there has been an 80% surge in the volume of XRP being sold, indicating a growing trend among traders to part ways with their holdings.
Renowned chart analyst Ali Martinez recently drew attention to the TD Sequential indicator’s accuracy in predicting XRP’s trends. While the indicator flashed a buy signal on the 3-day chart, suggesting a potential rebound, a closer examination of XRP’s technical indicators reveals a more complex picture.
Analyzing the daily chart, the Relative Strength Index (RSI) indicates oversold conditions, which often precede a bearish trend. However, such levels often trigger buy signals. Additionally, the Moving Average Convergence Divergence (MACD) slipping below the signal line signifies a negative trend dominated by bearish forces.
The impact of XRP’s price decline extends beyond short-term traders, as it also affects asset holders at large. According to data from Santiment, most traders would face a 5.61% loss if they choose to sell at the current price.
While this market scenario may discourage short-term investors, seasoned traders who envision XRP’s future success might see it as an opportune moment to strengthen their positions.
Interestingly, despite the price slump, there has been a noticeable increase in transactions by significant XRP holders, commonly known as whales. Although the number of new large XRP holders hasn’t significantly risen, these whales have not aggressively accumulated more XRP during the price decline, leaving market observers intrigued by their strategic moves.
Given the mixed signals from technical indicators and the uncertain actions of whales, it remains unclear whether the future of XRP will lean towards a bullish or bearish trend.