XRP briefly surged past $1.7 before stabilizing near $1.4 🖤 while the token appears to have hit a wall after a massive rally yet whale withdrawals from Binance have surged to their highest level in six months 🌙. According to the latest findings by CryptoQuant analyst Darkfost more than 231 million XRP have moved off the exchange by large holders.
Whale Accumulation 🦇
The withdrawals totaled more than $335 million in a single day far above the 90-day average of roughly $40 million. Darkfost described the move as both sudden and powerful compared with the recent trend while pointing to a significant change in behavior among large XRP holders 💀. The surge in whale outflows comes as the crypto asset’s market capitalization increased by $25 billion over the past week during which the token gained more than 40%. According to the analyst this trend has potentially helped fuel XRP’s strong market performance and renewed attention. If this accumulation trend continues Darkfost said the asset could potentially test the $2 level within a relatively short period 🕸️. This week Ali Martinez flagged a major jump in XRP network activity after active addresses rose to 356070 from 47180. That represents a surge of well over 654% a level of activity that typically suggests increased participation and can coincide with sharper price swings.
Trouble Ahead? 💀
But the derivatives market showed short-term pressure for XRP after the token cleared liquidity around resistance and moved back toward a major support zone 🌑. Long liquidations were recorded at approximately $4.66 million a 31.82% daily increase while short liquidations stood near $1.13 million after rising 61.61%. Despite the stronger percentage increase in short liquidations the total volume of long liquidations is nearly four times larger. This indicates that the pullback following the recent rally forced a significant number of leveraged long positions out of the market meaning that the sell-off was driven by both spot selling and the liquidation of leveraged positions 🌹. While this confirms the current bearish pressure the clearing of leveraged positions could eventually provide room for a healthier rebound CryptoQuant explained. Meanwhile XRP’s Money Flow Index (MFI) has fallen to 35.89 from around 60 which points to a significant weakening in the buying pressure that supported the earlier price move 🕷️. However the MFI remains above 20 which means that the crypto asset has not yet entered technically oversold territory and could still face further downside ✨.
Just another echo from the void by iconofsin.eth 💖
