Is XRP poised for a breakout? Major whale activity suggests…
XRP boosts bullish sentiment with increased whale activity and key on-chain metrics.
Whale activity and an increase in active addresses indicate heightened market engagement despite price declines.
- The reduction in coin reserves and strong long-term liquidations suggest a decrease in selling pressure.
A massive transfer of 30 million XRP, worth $17.4 million, recently exited Upbit, fueling speculation of a bullish wave.
With rising trading volume, traders are monitoring this whale move, eager to see if it continues.
It remains to be seen whether XRP can maintain enough momentum to break through key resistance levels and create a potential breakout.
Is XRP Ready for a Breakout in the Market?
XRP was trading at $0.5861, reflecting a 1.63% decrease at the time of publication. However, despite this slight decline, increasing whale activity and rising trading volume have left many hopeful for a recovery.
In the past 24 hours, active addresses increased by 1.21%, reaching 10,347 at the time of publication. This suggests more participants are engaging with the XRP ledger, often linked to rising demand.
Source: CryptoQuant
Additionally, according to CryptoQuant, the number of XRP ledger transactions has also increased by 0.72% over the past 24 hours, totaling 1.388 million.
This rise in transactions signals increased network activity, which is typically a bullish indicator for price action.
Decrease in Exchange Supply – A Bullish Indicator?
Another key factor fueling the bullish fire is the reduction in coin reserves. At the time of publication, the supply of XRP decreased by 0.29% in the past 24 hours, reaching 2.9769 billion XRP.
Lower exchange reserves often indicate reduced selling pressure as more tokens exit exchanges and move into personal wallets.
This trend may suggest that investors are anticipating a price increase, leading to less supply available for immediate trading.
Source: CryptoQuant
Liquidation Activity: What It Means for XRP’s Future?
Looking at the liquidation data for XRP, there has been significant activity in both long and short positions.
On September 23, total liquidations amounted to $579,009, with the majority occurring on exchanges like Binance and OKX.
In contrast, long positions reached over $362,000. This indicates strong support from long-term traders despite short-term volatility, which could contribute to a price increase.
Source: Coinglass
Can XRP Maintain Its Bullish Momentum?
While XRP has experienced a slight price decline, increasing whale activity, growing network engagement, and decreasing exchange reserves present a bullish case.
If these trends continue, XRP could maintain its momentum and potentially break through key resistance levels.
However, traders should remain cautious, as sustained buying pressure is essential for a breakout. The coming days will reveal whether this whale activity provides the necessary spark for a sustained rally.
