XRP Reserve Drop on Binance, Bullish Signal or Red Flag?
The post XRP Reserve Drop on Binance, Bullish Signal or Red Flag? appeared first on Coinpedia Fintech News
Since August 2024, the reserve of Ripple’s native token XRP has significantly declined on Binance, the world’s biggest cryptocurrency exchange. Experts and analysts view this as a positive sign, suggesting it could indicate accumulation.
XRP Reserve Decline
According to the on-chain analytic firm CryptoQuant, XRP reserves have declined by a significant 167 million tokens over the last 5 weeks. However, this is seen as a positive sign for XRP holders, as fewer tokens are being deposited on the exchange for sale, reducing the potential for selling pressure.
XRP Technical Analysis and Upcoming Levels
According to the expert technical analysis, XRP looks bearish as it is trading below the 200 Exponential Moving Average (EMA) on the daily time frame. Additionally, during the recent price decline, it breached the crucial support level of $0.546 and is currently trading below that level. However, XRP’s Relative Strength Index (RSI) is in oversold territory, indicating potential price recovery.
Currently, XRP is facing resistance from a descending trendline and the horizontal level of $0.55. If it gives a breakout of these hurdles and closes a daily candle above the $0.56 level, there is a high chance the XRP price could soar by 15% to the $0.65 level.
Key Liquidation Levels
As of now, the major liquidation areas are near $0.519 on the lower side and $0.541 on the upper side, as traders are over-leveraged at these levels, according to the coinglass data.
If market sentiment remains bearish and XRP price falls to the $0.519 level, nearly $8.76 million worth of long positions will be liquidated. Conversely, if the sentiment shifts and the price soars to the $0.541 level, approximately $6.56 million worth of short positions will be liquidated.
Current Price Performance
In recent days, XRP along with major cryptocurrencies has experienced a notable price decline due to bearish market sentiment and significant selling pressure from whales and institutions. However, the market now appears to be recovering, with top cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) seeing price surges of over 4.75%, 3.8%, and 4.5%, respectively.
At press time, XRP is trading near $0.538 and has experienced a price surge of over 2.5% in the last 24 hours. Meanwhile, its trading volume has increased by 65% during the same period, indicating higher participation from crypto enthusiasts amid the market downturn.
