Ripple’s XRP has been stuck in a sideways trading pattern, struggling to overcome key resistance levels, but whale investors, though, have been quietly building their XRP holdings.
Whales are betting on XRP
In the past few days, large XRP whales, have been increasing their positions.
The number of whale addresses holding between 1 to 10 million XRP has grown from 1,606 to 1,614 and while this isn’t too extraordinary, it’s definitely something.
Over this short period, these whales have scooped up nearly 50 million XRP, worth around $26.5 million.
This move is important because XRP’s price action hasn’t shown any major movement, no big developments or news which suggests these investors may be expecting either a future breakout or long-term growth.
But whales are clearly seeing potential in XRP and are willing to bet on its eventual upside momentum.
Major resistance for XRP
A closer look at Ripple’s daily price chart shows XRP facing resistance around both its 50-day and 200-day moving averages.
The 50-day moving average is acting as a key level, with the token hovering around $0.56.
On the other hand, the 200-day moving average, which is now at $0.54, also continues to be a barrier for XRP.
There were a few really brief upside movements in the past week, but they weren’t strong enough to push the price past these resistance levels.
XRP managed to rise to $0.53 but couldn’t maintain the momentum, leaving it stuck around this price point.
Ripple’s RSI sits at 42, suggesting the token is leaning towards a bearish trend. If this continues, XRP could enter oversold territory, which often signals a deeper price drop.
More XRP moving into exchanges
While whales are increasing their XRP holdings, CryptoQuant’s data shows a quite different trend with smaller traders.
Over the past several days, more XRP has been flowing into exchanges, meaning many traders are selling their holdings.
The charts reveal that exchange inflows have been almost double the outflows recently, which typically points to bearish market behavior.
This dynamic shows a split in sentiment, because while large investors are building their positions, smaller traders are taking profits or cutting their losses.
The key question is whether the continued accumulation by whales will be enough to change market sentiment and push XRP to break through its resistance levels.
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