– XRP price cleared $0.500 and $0.540 hurdles as it rallied 20% between October 19 and 24.
– The uptrend cleared buy-side liquidity, which is likely to result in a trend reversal.
– A spike in whale transactions at this local top formation adds credence to the possibility of an incoming pullback.
XRP price saw a sustained upward trend in the last week.But in the last two days or so, a local top formation suggests that the bull trend might have been exhausted.Investors need to exercise caution as it could catch them off guard.
Also read:
Ripple whales selling $55 million worth of XRP in a month could trigger a decline in XRP price
XRP price prepares for countertrend movement
XRP price rallied nearly 20% between October 19 and 24 and set up a local top at $0.586.This move cleared the buy-stop liquidity resting above swing highs formed as far back as August 21.Since the sweep of this liquidity and local top formation,
Ripple has shed nearly 7% and currently trades at $0.545.
The Relative Strength Index (RSI) has faced rejection at the overbought level of 70 and is currently sliding lower, which is an appropriate reaction to the XRP price action.There might be a further descent if Ripplle bulls remain absent, which could cause a breakdown of the $0.540 support level.
This development could see XRP price revisit the $0.500 barrier, but the remittance token is likely going to slide lower.Ideally, a sweep of the October 12 and 19 swing lows at $0.472 and $0.0.476 for sell-side liquidity would be the end goal of bears.
Read more:
Ripple proponent John Deaton calls SEC an “absolute disgrace” for prosecuting XRP and LBRY
XRP/USDT 1-day chart
Additionally, the whale transaction count metric shows a spike on October 25.This metric tracks transactions worth $100,000 or more and serves as a proxy for their actions.
A surge in this index after a rally often coincides with a local top formation as these investors could be moving their holdings to book profits.On the other hand, an uptick after a crash could mean that these high-networth individuals are buying the dips.In Ripple’s case, the spike in whale transaction metric is a sell signal and adds credence to the technicals, which are suggesting a bearish
outlook.
XRP whale transaction count
If XRP price bounces off the $0.540 or $0.500 support levels and produces a higher high above $0.558, it would uphold the bull rally structure.Such a development could invalidate the bearish outlook and potentially trigger a 20% rally that tags the $0.668 hurdle.
Read more:
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets turn bullish on ETF approval hopes
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