The crypto community is buzzing after a massive transfer of 200 million XRP by a Ripple whale to Binance. With a value of $355 million, this transaction has sparked concerns of a negative impact on XRP prices. Analysts are divided between a potential rebound and a deeper correction. Learn what this Ripple whale move implies for the future of XRP.
A major event has just rocked the XRP market. According to Whale Alert data, a Ripple whale transferred 200 million XRP, worth $355 million, to the Binance platform. This massive transaction immediately impacted prices, causing XRP to drop nearly 5% to $1.61.
Such moves by Ripple whales are often followed by significant price fluctuations. Investors are now pondering the intentions of this XRP holder and the potential implications for future price developments.
Opinions vary on the consequences of this Ripple whale transaction. Some technical analysts see a potential bounce, while others anticipate a further decline in XRP price.
Trader Dark Defender noted that the $1.88 level is holding firm on the monthly timeframe, indicating a downside resistance. On the other hand, analyst Ali Charts predicts a breakout from a head and shoulders pattern, potentially leading XRP to $1.30, representing a further 20% decline.
However, more optimistic voices like Casi Trades identify a demand zone between $1.61 and $1.79, which could act as a springboard for a rebound. They also point out that surpassing resistances at $1.97 and $2.17 could pave the way for a new bullish wave, targeting up to $2.72, or even the previous all-time high of $3.70.
Indeed, XRP stands at a crucial point for its future. Currently at $1.86, it has regained its 200-day moving average. However, if this level breaks, it may plunge towards the next demand zone at $1.30.
Beyond short-term fluctuations, some crypto experts maintain a positive outlook on XRP in the long run. Analyst Egrag Crypto has drawn interesting parallels with XRP’s past market cycles.
He highlights that during the bullish cycles of 2017 and 2021, Ripple experienced significant drops of 73% and 78%, respectively, before achieving spectacular gains of 2700% and 1000%. As long as the 50-day moving average does not cross below the 200-day average, Egrag believes the bullish trend remains intact.
According to him, these corrections are inherent to market cycles and present buying opportunities for long-term investors, despite short-term volatility.
Despite Egrag’s optimism, XRP has broken its daily and weekly uptrend. This whale might take advantage of XRP’s recent rebound to exit the market before a potential drop in the coming weeks. For now, XRP must reclaim $2.18 to revive hopes.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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