Crypto whales seem to be returning to the market with the aim of accumulating as much as possible as the market experiences a free fall. Recently, the on-chain analytics firm Coinglass revealed that whales and long-term holders have shown strong interest and confidence in XRP, Ripple Labs’ native token.
$155 Million Worth XRP Outflow
Data revealed that exchanges have witnessed a significant outflow of $155 million worth of XRP tokens. This substantial outflow is a clear sign of accumulation and suggests a potential buying opportunity.
This potential accumulation was witnessed by an on-chain analytics firm as the altcoin experienced a price drop of over 16% in the past 24 hours. With this significant decline, XRP is currently trading near the $2.50 level and has attracted impressive participation from traders and investors, resulting in a 210% surge in its trading volume.
Traders heavily shorting XRP
However, intraday traders seem to be taking advantage of the current market sentiment as they are strongly shorting XRP tokens.
At press time, traders are significantly over-leveraged at the $2.50 level, where bulls hold $14 million worth of long positions, believing XRP won’t fall below this level. Meanwhile, short sellers are over-leveraged at the $2.85 level, holding $111 million worth of short positions.
This data indicates that short sellers are currently dominating the asset and could easily liquidate $14 million worth of long positions.
XRP Technical Analysis and Upcoming
According to expert technical analysis, XRP has breached its crucial support level and appears likely to continue its price decline.
Based on recent price action and historical momentum, if XRP fails to hold the $2.55 level, there is a strong possibility it could drop by 25% to reach the $1.90 level in the coming days.
Credit: Source link