XRP Drops to $1.15 as Whales Accumulate 16.5M Tokens
XRP Price Retraces to $1.15 as Whales Take Action
RippleXRP-0.71%'s native token, XRP, recently experienced a price pull-back, falling toward the $1.15 mark. This drop comes after the token was rejected near the $1.34 level earlier this month.
While price drops can make traders cautious, several on-chain metrics and technical indicators are beginning to show contrasting signals compared to spot market prices.
Before looking closer at these metrics, remember that past performance of digital assets is not a guarantee of future results. You can check real-time crypto prices on the Bitkub Market.
Large Holders Accumulate 16.5 Million XRP
When a cryptocurrency experiences a sharp price drop, market participants closely watch the activity of major wallet holders, often referred to as whales.
According to crypto analyst Ali Martinez, large XRP holders returned to active buying after the asset fell from $1.34 down to $1.15. On-chain data indicates that whales accumulated nearly 16.5 million XRP tokens during this dip.
This activity creates a notable divergence between falling market prices and growing exposure among large wallet holders.
Key On-Chain Metrics Pointing to Shifting Demand
Binance Taker Buy/Sell Ratio Recovers
Another interesting indicator was highlighted by market commentator BankXRP. Looking at exchange data on Binance, the 14-day moving average of XRP’s Taker Buy/Sell Ratio has been climbing back toward 1.0.
This metric tracks aggressive buying volume relative to selling volume. When the ratio moves toward 1.0, it suggests that spot market buy-side pressure is gradually recovering, even while prices remain weak.
Extreme Market Sentiment as a Potential Signal
Social sentiment around XRP has also shifted noticeably. BankXRP noted that negative feeling across the XRP community has reached high levels.
Data shared by Ali Martinez showed that social mood surrounding XRP dropped to its lowest point since July. Historically, extreme fear can sometimes act as a contrarian indicator, although sentiment can remain low during extended consolidation periods.
What Technical Analysts Are Watching Next
Potential Short-Term Rebound Scenarios
Analyst CrediBULL Crypto noted that lower-timeframe price movements have been choppy and difficult to navigate recently. However, he suggested that if buyer momentum returns, XRP could attempt a rally of over 40%. Conversely, if market selling continues, prices could continue to consolidate horizontally.
Analyst Celal Kucuker provided another perspective, pointing out that XRP could potentially test the $1.05 to $1.10 range before finding a firm floor. In his analysis, if XRP breaks above its descending trendline under favorable market conditions, it could eventually target higher long-term levels around $4.15. But if support at $1.05 fails, the price could face further downward pressure.
The Importance of the $1.12 Support Level
Analyst Dark Defender highlighted $1.12 as a crucial technical support zone. This level served as significant resistance during market declines in July and August.
Although XRP dipped below $1.12 briefly in August, it managed to rebound above it. Dark Defender expects this former ceiling to act as solid support going forward.
From an Elliott Wave perspective, he views the current price weakness as the final stage of Wave 2. If $1.12 holds as support, it could set up a potential Wave 3 expansion phase. However, if $1.12 breaks down, this bullish wave count would be invalidated.
Navigating Risk in Volatile Markets
While whale accumulation and stabilizing buying metrics offer interesting insights, cryptocurrency markets remain subject to sudden shifts. Investors should always analyze both upside possibilities and downside risks carefully when evaluating market movements.