Large XRP wallet holders are withdrawing the coin from exchanges at notably high rates despite a price drop that has seen the XRP price slump by 18% in the last 24 hours.
Whales appear undeterred from accumulating and holding XRP, with the plummeting price presenting a buy-the-dip opportunity. Data from Whale Alert shows that in the last 12 hours, one major whale address transferred over $43 million in XRP from exchanges to external wallets, indicating a lack of intent to sell.
The transaction comes as the XRP price drops to multi-week lows. At the time of writing, XRP was trading at $0.468.
Data from Santiment shows a steady accumulation of XRP by whales. The amount of XRP addresses holding between 10,000,000 and 100,000,000 coins has increased notably in the last three months.
This behavior shows that large wallet addresses are confident in XRP’s long-term performance. Increased accumulation by whales is also usually followed by price gains as the reducing supply dampens the selling pressure.
Is An XRP Price Rebound Incoming?
The XRP Relative Strength Index (RSI) has dropped to 22 and is now in the oversold territory. The movement of the RSI line also shows significant downward momentum. While the selling pressure affects the short-term price action, the downtrend could reach exhaustion, paving the way for a bold recovery.
The Moving Average Convergence Divergence (MACD) also shows high market volatility. The MACD line has also made a bearish crossover below the signal line, further proving the bearish thesis.
While the indicators are flashing red, analyst Zain Haider on X notes that XRP price might follow a similar pattern to 2020/2021. The analyst pointed out that the monthly Bollinger bands for XRP appear to be contracting, a trend that usually follows a price increase.
The last time that XRP Bollinger bands experienced a similar contraction was in December 2020, before Ripple was sued by the US Securities and Exchange Commission (SEC). The crash that later followed because of the lawsuit pushed XRP to oversold regions. However, by April 2021, the XRP price had recovered to $1.96.
If the price follows a similar trend, XRP could post a 790% price jump from its current price, which could see the coin trade at around $3.46, creating a fresh all-time high.
