What you need to know
Since mid-July, the XRP has fallen by over 20 percent. The pullback may extend, however, if $2.8 support fails.
Ripple’s [XRP] According to cryptocurrency analyst Ali Martinez, the price decline may not be over yet. Altcoins have dropped more than 20% since mid-July when they peaked near $3.60. Most of the selling pressure has come from whales.
Whale wallets that hold 1,000,000 to 1 Billion XRP tokens have reduced their stock from 10 to 8 Billion, which means they sold about 6B worth of XRP.
Santiment
More Trouble for XRP Bulls?
As of the time this article was published, distribution for the cohort above had not been completed. Therefore, the XRP dropback could continue.
In fact, Martinez noted A bearish MVRV cross was also displayed, which further reinforced the short seller’s dominance.
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Last time this indicator was activated in March late, XRP fell over 30% to $2.40 from $2.4. A more attractive buying window may be opened if the trend continues.
What is the maximum drop in value from $2.9 at press time? Martinez said that the $2.8 level was another key support. However, a floor of $2.48 could also be seen from an on-chain perspective.
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It was clear from the on-chain chart that current altcoin holders have been buying it between $2.48 and $2.2, which is an important risk factor for any potential downside.
It is interesting to note that the price charts show similar levels around the 200-day Simple Moving Average. This suggests that XRP may plunge an additional 15% if the broader market’s sentiment turns sour.
TradingView: Source for XRP/USDT
Nevertheless, certain traders began increasing their exposure. According to CoinGlass, smart Binance traders increased long positions from 64% to 69% — a 5% surge in the past two days.
It was followed by a sharp drop in the number of large positions, from 79% to just 64%, between July and August. Other large players appeared To be sure that XRP has reached its bottom.
CoinGlass
The overall XRP value has declined by over 20%. Bitcoin’s [BTC] pullback. Some traders bought the dip in XRP even though BTC had not yet confirmed a bottom price above $110K due to macro-uncertainty.
If $2.8 breaks, a strong XRP base could be set at $2.48.
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Source: ambcrypto.com
