- Recent data showed significant whale outflows of XRP from one of the top exchanges.
- Market sentiment was bullish, with expectations that XRP could reach $4 before a new trading range is established.
Over the past month, XRP has seen a remarkable rally, with its price rising 148.54%. However, the momentum has slowed and has entered a phase of accumulation.
This consolidation period has contributed to a more subdued price trend, resulting in weekly losses of 2.43% and a daily dip of 0.93%.
Analysis by AMBCrypto revealed the possibility of a price recovery, but there was a possibility that the process could be delayed depending on market conditions.
Whales are causing market-moving moves in XRP
According to Whale Alert, XRP has a significant outflow from Binance, one of the largest cryptocurrency exchanges, in the past 24 hours.
Tracking data showed that 800,000 XRP, valued at $1,927,321,529 at the time of withdrawal, was delisted.
Such large-scale outflows often indicate bullish market sentiment.
Investors who transfer significant holdings from exchanges to private portfolios typically prefer to hold rather than sell, as private portfolios are less commonly used for trading.
This trend suggests that whales are positioning themselves for potential long-term profits.
If such outflows continue, it could lead to a supply crunch, reducing the liquidity of XRP on exchanges and potentially driving up its price.
XRP is still in an accumulation phase, with its price fluctuating within a certain range in recent weeks.
XRP could reach $4 after accumulation
The recent whale-induced supply contraction shows the possibility of a breakout from this phase. Should a breakout occur, XRP could rise 66.44% to around $4.
This accumulation phase is known in technical terms as a symmetrical triangle, which involves trading back and forth within a converging support and resistance.
Source: trading view
If a breakout does not occur, XRP will likely remain in the accumulation phase and trade sideways without significant price movements, notable gains, or substantial losses until the phase ends.
AMBCrypto analyzed market sentiment surrounding a potential bullish move and found a mixed reaction among investors regarding XRP’s short-term trajectory.
The XRP market is showing conflicting signals
At the time of writing, XRP’s Open Interest (OI) is down 2.35% over the past 24 hours to $0.35 billion.
A gradual decline in Open Interest means that the value of short positions is greater than long positions in the market, indicating continued downward pressure on the asset.
Read XRP’s 2024-2025 Price Prediction
However, the Funding Rate offers a glimmer of optimism as it remains in bullish territory with a positive reading of 0.0102% over the same period.
Source: Coinglass
While the bullish Funding Rate aligns with current positive sentiment, a reversal in Open Interest trends would be necessary to consolidate clear market direction for XRP.