According to Whale Alert, a whale has transferred 25.5 million Ripple (XRP) tokens worth $15.72 million to the Bitstamp exchange. This transfer, which happened in the late hours of November 26, is just one out of the series of XRP transactions involving whales in recent times.
🚨 25,500,000 #XRP (15,722,848 USD) transferred from unknown wallet to #Bitstamphttps://t.co/Vs53cVL2JA
— Whale Alert (@whale_alert) November 26, 2023
A few days ago, Whale Alert reported a transaction on November 23 that resembled the most recent one. At that time, 25.2 million XRPs also went into the Bitstamp exchange. Typically, when a whale moves a large amount of crypto into an exchange, it usually means the whale is looking to sell.
Should the sell orders continue, then the cryptocurrency price could be forced to drop. For XRP, it seemed that the effect of the whale transactions had been reflected in the price action.
Twenty-four hours ago, the token’s value was $0.62. But at the time of writing, XRP was exchanging hands at $0.60, indicating how selling pressure had impacted its former movement. On November 26, bulls attempted to defend the $0.62 support level.
XRP jumped to $0.63 within minutes (the large green candle below) on the H4 chart. However, the movement was immediately rejected at $0.63, and unfortunately for bulls, the selling pressure was too intense. As a result, XRP was forced to lose hold of the $0.62 support.
Another Plunge May Be Inevitable
With increasing sell orders and no buying momentum to stop it, XRP risks falling to $0.59. This was further reinforced by the Moving Average Convergence Divergence (MACD). At press time, the MACD was down to -0.0018.
Negative values of the MACD indicate that the shorter EMA (blue) had diverged below the longer EMA (orange). This is usually a sign of increasing downward momentum. So, there is a strong chance that XRP fails to resist downward pressure.
XRP/USD 4-hour chart (Source: TradingView)
Another indicator that could give an idea of XRP’s next movement is the Aroon indicator. This indicator can tell if a cryptocurrency is about to begin a new trend while signaling the strength behind the movement.
If the Aroon Up (yellow) is over 70% and the Aroon Down (green) is less than 30%, it means there is a strong bullish trend. However, when it’s the other way around, it indicates a solid bearish thesis.
At the time of writing, the Aroon Up was 71.43%, while the Aroon Down was 92.86%. Readings like this are signs of possible consolidation in the short term. However, XRP’s chances of dropping below $0.60 are higher than the possibility of an uptrend.
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