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Is XRP heading to $2.35 again after whales bought the dip?
Ripple’s [XRP] has experienced a significant decline over the past 24 hours, with its value dropping by 2.82%. This downturn has led to whales accumulating large amounts of XRP tokens, with a staggering 110 million tokens worth $242 million being purchased.
As a result, there is an increasing possibility that the token’s price may rebound and potentially return to its previous level of $2.35. This upward movement could be attributed to the buying pressure exhibited by these whales, who have demonstrated their confidence in the XRP market’s prospects.
The recent surge in buying activity can be seen through the Taker buy-sell ratio, which has reversed from a prolonged decline to 0.93. Historically, an increase in this metric suggests that buyers are entering the market following a rise in selling pressure over the previous days. This shift from increased selling to buying pressure could signify that investors view the current XRP rates as perfect entry points for them to re-enter the market.
This recent dip has seemingly triggered panic selling, with the exchange supply ratio surging to 0.029. This indicates an increase in inflow into exchanges, signifying that holders are transferring more tokens than they are withdrawing. This behavior suggests that investors are either selling or preparing to sell their XRP holdings.
Furthermore, market participation has reduced significantly, as active addresses have decreased from 59,561 to 44.1k. Such a decline in active addresses risks leaving the altcoin overvalued and potentially leading to a decline in its price charts.
While whales continue to buy, bears are currently dominating the market, resulting in diminishing bullish momentum while strengthening downward pressure. As such, it is possible that XRP may drop further in the short term, potentially reaching $2.20.
However, with this increased buying from whales and whales’ continued confidence in the market’s prospects, there is a possibility that we could see XRP reclaim its previous price level of $2.35.
Source: ambcrypto.com
