Data from CryptoQuant, a blockchain analytics platform, shows that XRP reserve has witnessed a significant decrease on Binance over the past five weeks. Although this would traditionally be a negative sign, this case presents some positive indicators that could benefit the digital asset.
The decrease in Binance’s reserves lowers selling pressure due to a lack of supply. This low selling pressure could positively impact XRP’s price, giving the digital asset means for a magnificent price rally.
A Potential XRP Pump
Despite this potentially bullish factor, XRP’s short-term technical indicators remain less favorable. Currently, the token is trading below its 200-day Exponential Moving Average (EMA) on the daily chart, a bearish sign.
It has also dipped below the $0.546 support level, which adds to the negative sentiment in the market. However, the token’s Relative Strength Index (RSI) indicates that a reversal is imminent, as it suggests the asset is oversold.
XRP faces resistance from a descending trendline and a horizontal level near $0.55. A successful break above these levels could lead to a significant price increase, potentially reaching $0.65. A prominent crypto analyst recently highlighted this, predicting a hard pump if the digital asset can break through $0.55.
Market Sentiment and Potential Liquidation
Coinglass data highlights key liquidation levels near $0.519 and $0.541 due to over-leveraged traders. If the digital asset were to decline to $0.519, it could trigger the liquidation of approximately $8.76 million worth of long positions. However, a rally to the upper level of $0.541 could liquidate $6.56 million in short positions.
Bearish trends and selling pressure from whales and institutions have affected the market sentiment. However, there are signs of a broader market recovery, as evidenced by gains in major cryptocurrencies.
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XRP’s Current Price and Market Dynamics
XRP is trading around $0.5384, up 0.29% over the past 24 hours, and headed for the upper threshold for liquidations. While this digital asset has faced recent challenges, many experts are confident that a resurgence is on the horizon.
Investors will monitor the situation eagerly, hoping XRP can breach the $0.55 resistance and begin the rally everyone has been waiting for.
An analyst recently spotted technical indicators that could send the token to $1, and when combined with the lowered selling pressure on Binance, $1 could be a potential stepping stone in a larger surge headed for a new all-time high.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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