Journalist
Posted:
- The increase in accumulation pushed XRP to $0.63.
- If buying pressure subsides, XRP could drop to $0.60 and force some liquidation as well.
Ripple [XRP] According to AMBCrypto’s, addresses holding between 100,000 and 10 million tokens have collected more than $6 million worth of cryptocurrency in the past seven days. analysis of Santiment’s data.
As a result, the supply of this cohort has increased. For example, at the time of writing, the 100,000 to 1 million cohort accounted for 11.39% of the total XRP supply, while the 1 million to 10 million group held 6.31%.
Source: Santiment
XRP responds
By reducing the number of tokens that can be purchased on the market, whales can put upward pressure on prices. Also, accumulating large amounts of cryptocurrency can result in high volatility.
In the case of XRP, there are signs that the cryptocurrency is poised for a parabolic move. At the time of writing, the value of the token was $0.63. This was after the price rose 2.29% in the past 24 hours.
From November 25th to the time of writing, as indicated in the H4 chart, XRP consolidated. During this period, the price moved between $0.61 and $0.62. However, a surge in whale trades seemed to have affected volatility when a sharp green candle suddenly appeared.
However, the Bollinger Bands (BB) showed that XRP’s volatility was not so extreme as to cause significant price fluctuations. At the moment of pressing, both the lower and upper bands of the indicator are contracted.
Source: TradingView
But at the same time, the Relative Strength Index (RSI) rose to 63.09. Such a rise implied that buying momentum was picking up. Thus the possibility of XRPs upside down in the short term cannot be ruled out.
Carefully! Retracement is an option
AMBCrypto also looked at XRP liquidation levels, as shown in HyblockCapital’s data. Liquidation levels are potential price levels at which liquidation of a trader’s position can occur.
At the time of going to press, the Cumulative Liquidation Level Delta (CLLD) showed that there were more open long positions than short positions.
This implies that more traders are betting on an XRP price increase than on a decrease. However, a possibility of full retracement emerged, as indicated by the positive CLLD. Should a retracement occur, traders with entries around $0.60 could be liquidated.
Source: HyblockCapital
Another indicator that could have an effect on XRP’s price action is Open Interest. Open Interest is the number of open contracts remaining at a given time. When Open Interest increases, it means there are more traders trying this capitalize on the movement of an asset for potential profits.
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However, a decrease indicates an increase in the number of closed positions. At the time of writing, XRPs Open interest had decreased. Compared to the price movement, Open Interest showed that the upward movement was weak.
Source: Coinglass
So it is possible that XRP falls back to $0.61. However, if the buying momentum continues, the token could defy the odds and possibly head to $0.65.
