XRP is I’m starting to get better after bouncing off $0.405 on July 5, suggesting the early stages of a rebound may be underway. The cryptocurrency market has been volatile recently, and XRP has not been spared. The cryptocurrency recently fell below $0.40 for the first time in over a year. Interestingly, on-chain data suggests that some whales may be gathering in waiting for the great comebackwhich may even be responsible for a rebound from the USD 0.40 level.
XRP Whales Buying on Downtrends?
Various on-chain data have shown gigantic XRP transactions to and from exchanges over the past few weeks, suggesting that some whales may be taking advantage of the decline to accumulate more tokens. In particular, recent transaction alerts from Whale Alerts on social media platform X noted the recent transfer of 52.1 million XRP tokens worth $22.7 million from cryptocurrency exchange Binance to an unknown wallet.
The details of this $22 million XRP transaction are quite fascinating, and transfers like this are worth paying attention to because they can either augment or decrease buying and selling pressure. In this case, the move away from Binance suggests a decrease in selling pressure on the exchange.
🚨 52,103,936 #XRP ($22,713,495) transferred from #Binance to an unknown wallethttps://t.co/7TUiD49tYb
— Whale Alert (@whale_alert) July 9, 2024
Interestingly, on-chain data shows that this was not an isolated transaction. The data shows that a similar transaction took place over the weekend, when movement 31.9 million XRP tokens from Binance to an unknown wallet. At the time of transfer, these tokens were worth $14.22 million. In addition, the Blockchain blockchain analytics engine also revealed transfer of 10 million XRP tokens worth $4.2 million from Binance to another unknown wallet.
What’s Next? Key Levels to Watch
At the time of writing, XRP is trading at $0.434. If bulls regain control, the first minor resistance will be at $0.45, and the next key resistance level to watch out for is around $0.50. A break through there could open the floodgates for a rally towards $0.70 or even $0.80.
To spur such growth, XRP would need to see an augment in trading volume and buying pressure from retail and institutional investors. Positive news from Ripple’s ongoing legal battle with the SEC could be a major catalyst. A decisive victory or settlement would remove a huge cloud of uncertainty hanging over XRP.
On the other hand, if the bears maintain their grip, the first support level to look at is around $0.40. This is because XRP recently rebounded from $0.40 after a massive sell-off last week. A breakout of this level could see XRP fall towards another support at $0.3750.
Featured image created with Dall.E, chart from Tradingview.com
