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Onchain data shows that over $40 billion worth of XRP has been moved over the last week, which puts the altcoin on the edge. Specifically, these coins were transferred to exchanges, which indicates that XRP is at risk of a massive sell-off.
Over $40 Billion XRP Moved To Exchanges
CryptoQuant data shows that over $40 billion has been moved to Binance this past week, with the exchange’s reserves surging during this period. This development is usually bearish as it indicates that investors are looking to offload their coins. This comes as the XRP price surged to as high as $2.6, which explains this wave of profit-taking.
Moreover, crypto analyst Ali Martinez revealed that Bitcoin whales have secured profits, selling over 30,000 BTC this week. As such, XRP whales may be simply mirroring this move. Meanwhile, Bitcoinist reported that XRP is reaching oversold levels as net flows turn negative, with the wave of sell-offs heightening.
This selling pressure comes amid Judge Analisa Torres’ ruling in the Ripple SEC lawsuit, which provides a setback for XRP. The judge denied the parties’ motion for an indicative ruling because the filing was procedurally improper. The ruling also sparked a massive sell-off, with XRP dropping over 4%.
XRP risks losing its bullish setup as Martinez revealed that the key support zone is at $2.38, meaning that a drop below this level could lead to a deeper correction. However, a hold above this level could set the altcoin for a rally to new highs as the analyst revealed that there are no major resistance clusters ahead. Crypto analyst CasiTrades had warned that XRP’s failure to hold above the $2.69 resistance could send its price towards $2.30 for a reset.
Altcoin Has Formed A Double Bottom Formation
In an X post, crypto analyst Egrag Crypto revealed that XRP has formed a double bottom following the dip to $2.3126. He stated that the altcoin is still bouncing off the red descending trend line, showing resilience. The analyst added that the altcoin is experiencing some micro noise within the range between the Fibonacci 0.888 levels at $2.30 and $2.62.
His accompanying chart showed that the key is for the XRP price to hold above the trendline at $2.3. A bounce from this level could send the altcoin as high as $3.8, near its current all-time high (ATH) of $3.84. Based on its historical performance, Egrag Crypto still expects the altcoin’s price to rally to between $27 and $33 in this market cycle.
At the time of writing, the XRP price is trading at around $2.37, down almost 2% in the last 24 hours, according to data from CoinMarketCap.
