- XRP’s rally moved closer to the third quarter supply zone.
- Will whales intensify profit-taking in the zone again?
Ripple [XRP] posted an 11% gain last week, boosted in part by Grayscale’s inclusion of an XRP Trust in its line of crypto products.
However, the altcoin was on the verge of hitting a Q3 supply zone near $0.06. This zone has historically led to intense profit taking, especially by whales. Will the trend repeat according to the XRP price prediction?
Will Supply Zone Reverse XRP Price Prediction?
Source: XRP/USDT, TradingView
XRP has printed a clear price trend in the third quarter. Notably, the strong recovery in July and the partial win over SEC in August ended close to the supply zone at $0.6. This has made $0.6 an important price level to watch, especially during the price rally.
At the time of writing, this week’s rebound was heading into the supply zone. If the trend repeats and another price rejection occurs, XRP could drag towards $0.54 support.
In such a scenario, shorting stocks would yield profits, especially if the overall market cools ahead of the FOMC meeting.
However, given the positive expectations of the Fed’s rate cuts, a market re-entry would only make sense if XRP turns the supply zone into support.
Meanwhile, the RSI showed more room for the current uptrend, while the stochastic RSI showed overbought conditions. This further indicated that the supply zone should be identified as a crucial watch list.
The exchange flow shows a simplified sale, but…
Source: CryptoQuant
This week’s XRP recovery was also marked by reduced selling pressure on centralized exchanges, as evidenced by a sharp drop in inflows on the exchanges.
On Binance, XRP inflows fell from nearly 1.8 billion tokens on September 8 to around 50.9 million at the time of writing. This reduced supply pressure helped this week’s uptrend.
However, a price increase to $0.6 could attract a whale sale if the trend of the past month repeats itself. Whales fueled profit-taking in August as XRP reached the supply zone at $0.6, as illustrated by spikes in Whale-to-Exchange Flow.
Source: CryptoQuant
Read XRP’s 2024-2025 Price Prediction
If the trend repeats and whales opt for a sell-off at this level again, XRP’s move above the supply zone could be derailed. In such a case, speculators can aim for a new market re-entry at a support level of $0.54 or $0.50.
However, the bearish thesis could be debunked if risk markets stage a strong rally after the FOMC meeting.
