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Are XRP Whale Transactions Behind 15% XRP Price Dump?

Last Updated March 15, 2024 6:47 PM
Valdrin Tahiri
Last Updated March 15, 2024 6:47 PM

Key Takeaways

  • XRP enjoyed its most bullish day in nearly a year on March 11 but has fallen since.
  • The XRP price failed to sustain a breakout above a 1,060 day resistance trend line.
  • Were XRP whale transactions behind today’s 15% XRP price decrease?

The XRP price has traded devoid of any significant volatility for the past six months, approaching the end of a long-term consolidation pattern. This changed on March 11, when the XRP price broke out from a long-term resistance trend line.

While XRP moved outside of its long-term pattern, it fell back below it today after a sudden dump. This weakness raises the question: Will XRP ever break out from this long-term resistance and begin its upward trend?

Will XRP Clear 1064-Day Trend Line?

The XRP price had fallen under a long-term descending resistance trend line since April 2021. The trend line caused several rejections (red icons), the most recent occurring in March 2024.

Additionally, XRP had increased alongside an ascending support trend line since June 2022, creating a symmetrical triangle pattern. The XRP price seemingly broke out this week, reaching a high of $0.74 in the process. However, it failed to sustain the increase and fell back below the trend line again.

XRP Price Does Not Break Out From Long-Term Trend Line
XRP/USDT Weekly Chart: Credit – TradingView

The RSI and MACD give an unclear reading. Both the RSI and MACD are following their own descending resistance trend lines, which align with the long-term trend line from the price action. Breakouts from these trendlines are required to confirm the bullish trend and start an upward movement.

Similarly, the MACD is positive and is breaking out from its own trend line. These are signs that the long-term breakout is legitimate, and the increase will continue.

Is the XRP Breakout a Sign of Things to Come?

While the weekly time frame gives mixed readings, the daily time frame chart is bearish because of the price action, RSI and MACD.

While the XRP price broke out from a descending resistance trend line, it was rejected at the 0.618 Fib retracement resistance level of $0.74. The rejection coincided with a bearish divergence in the RSI (green line) and a bearish cross in the MACD (red icon).

XRP Price Falls After Whale Transactions
XRP/USDT Daily Chart. Credit: TradingView

It is possible that the decrease was helped by two significant XRP whale transactions. The whales transferred more than 50 million XRP tokens from cold storage wallets to centralized exhanges. Such transfers often precede price decreases, as was the case with XRP.

Since such transactions represent a transfer from an illiquid to a liquid supply, the movement is in line with the other bearish readings from the daily time frame.

XRP Struggles to Confirm Trend

While XRP enjoyed the most bullish day in nearly a year on March 11, it has fallen sharply since, invalidating a potential breakout from a long-term resistance trend line.

It is possible that two large whale transactions catalyzed this decrease. XRP now attempts to find support and potentially make another breakout attempt.

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