Ripples XRP Price Struggles Under $2.5 As Almost 3 Billion XRP Flood Binance
XRP remained relatively quiet on Thursday, trading within a narrow range of $2.45 to $2.36. This comes after a modest recovery from a recent dip to $1.90 earlier this week, following a multi-year high of $2.90 on December 3.
Notably, XRP, now the fourth-largest cryptocurrency by market capitalization, has seen a remarkable 250% rise over the past month, making it one of the standout performers in the recent crypto market rally.
XRPs recent bullish momentum was fueled by several key factors beyond riding the broader market uptrend sparked by Bitcoins rally following Donald Trumps election victory last month. Optimism surrounding Ripples ongoing SEC lawsuit has played a significant role, with speculation about a potential leadership change and the dismissal of the case boosting investor confidence.
Additionally, growing institutional interest has emerged through applications for XRP-related exchange-traded funds (ETFs), with filings from firms like 21Shares and WisdomTree further solidifying market enthusiasm. Adding to this excitement are rumors that Ripple may soon launch the RLUSD stablecoin, which has heightened anticipation and contributed to XRPs recent gains.
However, the price now hovers near the critical $2.50 support level, sparking concerns of a potential decline. Adding to the risk, substantial whale activity has intensified selling pressure, with CryptoQuant analyst J.A. Maartunn reporting a sharp increase in whale transactions involving Binance in the past month.
Over the past 30 days, more than 2.66 billion XRP tokens have been deposited into Binance. Maartuun wrote. According to the analyst, this represents the highest level of whale activity since April 2024, signaling potential strategic shifts by these influential market participants, who often have the power to move prices substantially.
Adding to the uncertainty, broader market dynamics also weigh heavily on XRP. On Wednesday, Swyftx lead analyst Pav Hundal warned that Bitcoins dominance, currently at 54.8%, could continue to rise, potentially diverting capital from altcoins like XRP.
In November, funds flowed out of Bitcoin and into altcoins. Now, the trend has reversedmoney is flowing back out of altcoins. XRP, SOL, and ETH market cap growth has stalled. He tweeted.
Furthermore, the rapid increase in leveraged trading has added another layer of risk. Open interest in XRP futures has surged to nearly $3.99 billion, almost doubling within a month. Historical trends suggest that such heightened leverage often precedes market corrections, raising further concerns about XRPs near-term trajectory.
Nevertheless, despite the challenging fundamentals, analyst Ali Martinez identified a potentially bullish setup for XRP, noting the formation of a bull flag pattern that could signal a breakout, potentially driving the price toward the $4 mark. However, the pundit also cautioned that the TD Sequential indicator recently issued a sell signal on the 4-hour chart, indicating a likely short-term correction before any breakout above $2.46.
XRP traded at $2.4 at press time, reflecting a 0.64% surge in the past 24 hours.
Read more: https://zycrypto.com/ripples-xrp-price-struggles-under-2-5-as-almost-3-billion-xrp-flood-binance/
Text source: ZyCrypto
