- XRP reportedly reached a distribution phase as whales sell off assets to secure profit after a “US crypto reserve-triggered rally” forced a sharp upsurge.
- XRP reserve on Binance is reported to have increased from 2.72 billion to 2.90 billion, signaling an increased selling pressure.
XRP recorded a staggering surge of 35% after US President Donald Trump announced its inclusion in the crypto strategic reserve, as explained in our last analysis. Soon after, the asset took a nosedive to $2.2 before making a marginal surge to $2.3. However, its 24-hour return remains 10% down, dragging its market cap to $138 billion. Fascinatingly, whales are reported to be making moves behind the scenes.
Shedding more light on this, CryptoQuant founder Ki-Young Ju disclosed that whales are “cashing out”. According to him, these large investors have increased transaction activities between the range of $2 and $3 in the past month. Interpreting this activity, Ki-Young explained that the asset is currently in the distribution phase.
Technically, this describes a period when large investors liquidate their assets to secure profits. Confirming this trend, another analyst, identified as Maartunn, disclosed that XRP is going through a distribution phase. According to him, negative whale flow has reached an all-time low.
This metric shows the Whale Flow. They are offloading $XRP like never seen before.
Meanwhile, whales aggressively accumulated assets in the first week of February. As indicated in our earlier discussion, 520 million XRP were purchased in just a week. However, this trend has taken a significant nosedive.
Our research shows that the exchange reserve of XRP on Binance has considerably increased from 2.72 billion to 2.90 billion tokens. Specifically, this implies that there is a higher selling pressure, aligning with the “distribution phase claims.”
Analysts Speak on XRP
Commenting on its recent price behaviour, a renowned analyst called Dom has explained that the asset failed to sustain its volume-weighted average price (VWAP) of $2.7. For the asset to revisit this level, it would first have to make a decisive move above the $2.5 level.
Joining the discussion, an analyst called Dami DeFi also believes that the asset’s high time frame (HTF) chart also shows a higher consolidation. According to him, this is below key resistance and ascending trendline. Per his observation, the asset could soon flip into a price discovery mode as Trump continues to back the XRP Strategic Reserve.
For Bitcoin proponent Matt C, XRP has formed an inverse head and shoulder pattern. Meanwhile, the Relative Strength Index (RSI) is said to be forming a lower high in the 1-hour chart of the asset.
According to analyst Dark Defender, XRP could target the $77 level. However, the asset would have to breach a crucial psychological level at $5.85. From this level, it would have to breach the $8.03, and the $18.22 level to validate this prediction. This aligns with a prediction by analyst Random Crypto Pal which tips the price of XRP to hit $385. As mentioned in our previous news brief, this analyst expects a 99,900% surge from the July 2024 low.
Fascinating, another analyst called CasiTrades has also disclosed that XRP could continue its rally to the top once it secures the $2.9 zone.
