Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

XRP falls to 3-month low: Here’s what its whales are thinking

2min Read

It’s not a good time for XRP holders. There may be a silver lining here though…

XRP falls

Share this article

  • XRP loses more than 5% of its value in 24 hours
  • XRP’s market sentiment shifted from greed to neutral

Payments-focused cryptocurrency XRP plunged to $0.50 for the first time in three months. In doing so, it is staring at a real danger of reversing all the gains made since its mid-October rally.

XRP sinks deeper

The market’s sixth-largest digital asset was in a free fall at the time of writing, depreciating by more than 5% in a 24-hour period, according to CoinMarketCap. In fact, trading volumes exploded by 80% around the same time, implying that traders have been dumping the coin en masse.

Ironically, the decline followed hours after popular technical analyst Ali Martinez spotted a buy signal for the asset on the 3-day chart. He claimed that XRP “could be gearing up for a rebound.”

AMBCrypto analyzed few more of XRP’s technical indicators to get a fair idea about the situation.

On the daily chart, the Relative Strength Index (RSI) was in the oversold territory at press time. While this was indeed a bearish sign, such levels generate buy signals. Moreover, the Moving Average Convergence Divergence (MACD) moved below the signal line and was negative, indicating the dominance of bearish forces.

Source: Trading View

Whales aren’t buying XRP

XRP’s price depreciation impacted the overall profitability of asset holders too. According to AMBCrypto’s analysis of Santiment’s data, most traders would realize losses of 5.61% at the current price if they choose to sell their coins.

Source: Santiment

These conditions could restrict short-term traders from investing in XRP. However, seasoned traders, who believe in the long-term prospects of the coin, could buy the dip to consolidate their positions.

As it turned out, XRP whale transactions did spike as the price crashed. However, there wasn’t any meaningful jump in the addresses of whale user cohorts, showing that whales did not actually accumulate.

Source: Santiment


Is your portfolio green? Check out the XRP Profit Calculator


At the time of writing, XRP’s market sentiment had shifted from greed to neutral, according to AMBCrypto’s scrutiny of Hyblock Capital’s data. It remains to be seen if the asset manages to build some meaningful buying pressure in the days ahead.

Share

Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance. A so-so Bitcoin maximalist, Aniket has a strong disdain for memecoins and the unfounded frenzy they seem to generate every market season. Coming from a strong engineering background, Aniket previously worked as a Content Manager for TV9 Network. Before his stint over there, he was an Associate Multimedia News Producer at Reuters.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.