- Buyers are trying to push XRP above $0.61.
- Liquidation can occur around $0.58 due to the high liquidity concentration.
In the usual way, Ripple [XRP] has locked up one billion XRP tokens, according to a Whale Alert disclosure. A look at the transactions showed that the blockchain payments company locked the tokens in four different batches.
This includes an initial deposit of 200 million, followed by a transfer of 300 million. The project then ended the transaction with a 500 million XRP lock.
🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 500,000,000 #XRP (USD 304,378,440) on deposit at #Ripplehttps://t.co/0ggl3HjjeF
— Whale Alert (@whale_alert) December 1, 2023
XRP sentiment is changing
Ripple has a habit of locking tokens at the end of each month or at the beginning of a new one. The project does this because it has no reward system for mining Bitcoin [BTC].
So, to close the loophole, it has drawn up a plan to lock 55 billion tokens to balance the supply and demand levels of XRP.
Sometimes the activity leads to an increase or decrease in the XRP value. However, AMBCrypto’s assessment of the XRP price action showed that the cryptocurrency only consolidated this time.
At the time of writing, the value of XRP was $0.61, approximately the same as on December 2.
Despite XRP’s sideways movement, sentiment around the token appears to have changed. On November 30, XRP’s weighted sentiment was -0.45. The reading at the time implies that the broader market was bearish on the price.
But at the time of writing, weighted sentiment had climbed into the positive region. If value continues to grow, it means market players do too convinced that the price of XRP could rise soon.
Source: Santiment
The token offers risk and reward
Santiment data is also provided context by taking into account the Relative Strength Index (RSI). At the time of writing, the RSI value per 4-hour chart was 62.06. This reading suggests that buyers are trying to get XRP above $0.61.
Should the RSI value continue to rise, XRP could potentially retest $0.65 in the near term.
AMBCrypto has also considered XRP liquidation heatmap using HyblockCapital data. The liquidation heatmap helps traders identify areas of high liquidity.
A high concentration of liquidity around a particular region means that the price of cryptocurrency can move in that direction. For XRP, the high liquidation zone was around $0.62, indicating that the token has a good outcome opportunity of hitting the price.
Source: HyblockCapital
Read Ripple [XRP] Price prediction 2023-2024
However, short-positioned traders should watch out for the $0.58 level, where there was also a high level of liquidity. If XRP pulls back, there could be a lot of liquidation in the zone.
In the meantime, the native Ripple token may continue to consolidate. But as a big If the buy order comes in, traders can expect the cryptocurrency’s price to rise above $0.62.
