XRP is starts to recover after rising $0.405 on July 5, suggesting the early stages of a recovery could be underway. The crypto market has been volatile lately and XRP has not been spared. The price of the crypto recently fell, falling below $0.40 for the first time in over a year. It is interesting to note that data on the chain indicates that some whales may be accumulating anticipating a big comebackwhich could even be responsible for the $0.40 recovery.
XRP whales buy the dip?
Several on-chain data have shown large XRP transactions to and from exchanges in recent weeks, suggesting that some whales could take advantage of the dip to accumulate more tokens. Recent transaction alerts from Whale Alerts on social media platform
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The details of this $22 million XRP transaction are quite fascinating and such transfers are worth paying attention to as they can increase 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 USD) transferred from #Binance to unknown wallethttps://t.co/7TUiD49tYb
— Whale Alert (@whale_alert) July 9, 2024
Interestingly, data from the chain shows that this was not an isolated transaction. Records show a similar transaction took place last weekend the movement of 31.9 million XRP tokens from Binance in an unknown wallet. At the time of transfer, these tokens were worth $14.22 million. Furthermore, the blockchain analysis engine Blockchain also revealed the transfer of 10 million XRP tokens worth $4.2 million from Binance to another unknown wallet.
What’s next? Important levels to watch
At the time of writing, XRP is trading at $0.434. If the bulls regain control, the first minor resistance is at $0.45 and the next major resistance level is around $0.50. If we get through that, the floodgates could open for a rally towards $0.70 or even $0.80.
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To fuel that kind of upside, XRP would need to see an increase in trading volume and buying pressure from both retail and institutional investors. Positive news Ripple’s ongoing legal battle with the SEC could be a major catalyst. An outright victory or settlement would remove a huge cloud of uncertainty over XRP.
On the other hand, if the bears maintain their grip, the first support level to watch is around $0.40. This is because XRP recently rose $0.40 after an intense sell-off last week. A break below that could see XRP tumbling to another support for $0.3750.
Featured image created with Dall.E, chart from Tradingview.com