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Ripple Moves 202m XRP While Facing Bearish Sentiment — Price is Breaking Key Support

Last Updated February 6, 2024 3:50 PM
Nikola Lazic
Last Updated February 6, 2024 3:50 PM

Key Takeaways

  • Ripple has made large XRP transfers amid bearish sentiment.
  • The coin’s price could potentially rebound, despite the current downturn.
  • XRP’s support level is at risk, with a price rise possible.

Whale Alert , a service that monitors large cryptocurrency transactions, recently identified three significant transfers of XRP by Ripple Labs, totaling 202.5 million XRP. These transactions occurred amid a bearish market sentiment affecting not only XRP, but also other major cryptocurrencies. 

Meanwhile, XRP’s price is starting to break its key ascending support, signaling a potential downtrend. However, if it holds, we could see a trend reversal. What is the likely outcome?

XRP Sentiment

Whale Alert said that Ripple initiated two large , moving 173.7 million XRP to its internal wallets, a move highlighted by Bithomp and sparking surprise and bullish forecasts among the XRP community. 

A third  transaction of 28.85 million XRP to Bitstamp, initially from an anonymous address, was also linked to Ripple.

Short sellers of XRP could get a surprise soon, according  to on-chain data aggregator Santiment. Santiment found that XRP, along with other leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and Binance Coin (BNB), has experienced a significant downturn in sentiment on social media. 

 

Specifically, XRP, ADA, and SOL have reached their lowest sentiment levels in six months. However, Santiment analysts suggest that spreading fear, uncertainty, and doubt (FUD) among high market cap cryptocurrencies could signal an impending price increase, as market trends often counter traders’ expectations. Therefore, a rebound might be on the horizon.

XRP Price Analysis 

Since reaching a high of $0.75 on November 13 2023, the price of Ripple has been in a downtrend. As of February 6, it has reached its key ascending support and is starting to fall to around $0.50. 

Daily chart.
XRP is at its key ascending support.

However, a full breakout still hasn’t been made. With the daily chart’s Relative Strength Index (RSI) technical indicator showing oversold conditions, we might see a bounce. There is still a high possibility that the downtrend from November is corrective and is wave two in a five-wave uptrend from the October 10 low of $0.46. 

This is why if the price goes below $0.46, it would make a breakout and invalidate an uptrend having started in October. In that case, the outlook would be grim, with XRP facing further price drops, potentially to $0.40. 

But if the price does find support and starts immediately going back up, things might be more bullish. If this happens, we could see XRP entering another larger uptrend that should lead to a higher high than in November, with the next target at $1. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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