Cryptocurrency markets are heading lower, moving away from the impressive first quarter peak of $2.86 trillion. Major altcoins such as Ethereum were not immune, with investors facing losses from the March highs.
The sell-off affected XRP, with its price plummeting to $0.43 on Sunday before recovering slightly. However, this rise did not last long above $0.5 as selling pressure increased due to market panic caused by the war between Iran and Israel.
After weekly decline of 21.2%, XRP is now trading About $0.4906 The 24-hour trading volume reached $1.66 billion. With a market capitalization of $27 billion, XRP remains the seventh largest crypto asset.
XRP has seen a surge in large transaction volume recently, which typically indicates whale activity. In the meantime, the 24-hour chart below will point out possible scenarios based on technical indicators.
XRP Price Analysis: Charts Show Bearish Sentiment, But There Are Potential Bullish Catalysts
Technical indicators currently paint a bearish picture for XRP. The coin’s price is currently below the 200-day and 50-day simple moving averages (SMA).
Positioning below these major moving averages indicates that sellers have temporarily taken control of the momentum.
In addition to the bearish signal, XRP has a relative strength index (RSI) reading of 31. An RSI below 30 indicates oversold conditions, hinting at further downward momentum ahead if buyers don’t step in soon.
With these clear technical sell signals flashing, many investors may be taking a cautious approach to avoid catching a falling knife. However, while the short-term outlook seems pessimistic, there are still some potential catalysts that could drive the price of XRP higher.
XRP whale activity picks up, what’s the outlook?
Whale Trade Tracker whale alert Over the past few days, major XRP action from some major companies has been spotted. On April 15, more than 457 million XRP was deposited into exchanges such as Bithumb, Bitvavo, and Bitstamp, worth more than $234 million.
The largest single transfer was to Bithumb for 390 million tokens worth $201 million. On April 16, 158 million XRP worth $77 million was transferred from private wallets to cryptocurrency exchange Binance.
Another 28.9 million XRP worth $14.2 million also entered the Bitstamp exchange. However, Whale Alerts also detected outflows from Binance to private wallets on the same day.
Specifically, 100 million XRP (approximately $48 million) left Binance for anonymous wallet in three separate transactions for 33.3 million XRP ($16.2 million).
Whale action could cause XRP price volatility
These large trades by XRP whales often precede major price movements. Typically, when investors deposit their tokens into an exchange (such as recent inflows to Binance, Bithumb, etc.), they may signal an intention to sell, putting downward pressure on the price.
Conversely, when whales withdraw XRP to private wallets (such as withdrawing 100 million XRP from Binance), this indicates an accumulation that, if sustained, can provide upward price momentum.
For average XRP investors, this increase in whale activity signals potential future volatility as these large holders change their positions. Therefore, investors can only watch the trends between bulls and bears to determine XRP’s next price trajectory.
Ripple legal victory could boost XRP price long-term
The ongoing Ripple vs. SEC lawsuit is a key factor that could affect XRP’s long-term price outlook. Ripple’s legal team is preparing to respond to the SEC’s request for a massive $2 billion fine.
If Ripple wins the lawsuit, it will significantly enhance XRP’s status and reputation in the cryptocurrency market. A legal victory would make XRP more attractive as an investment product in the future.
At the same time, the next bull cycle in the cryptocurrency market is approaching, which will inevitably boost all major assets such as XRP. However, ahead of the upcoming bull cycle, there is a new coin entering the market today that is attracting positive attention.
