According to a report by Whale Alert X, a significant amount of Ripple (XRP) worth $20.98 million was transferred from the MEXC exchange to another wallet on Dec. 10. The transfer occurred while XRP was trading sideways, having fallen from $0.63 on Jan. 3.
The price of XRP plummeted after 36.96 million tokens were withdrawn from MEXC. XRP is currently trading at $0.56, reflecting a 10.25 percent decline over the past seven days. Despite these weak results, the significant withdrawal of funds from MEXC to the OTC wallet indicates that at least one major investor believes in the long-term potential of XRP.
🚨 36,964,930 #XRP (20,984,261 USD) transferred from #MEXC to unknown wallethttps://t.co/jJq5tjrFJe
— Whale Alert (@whale_alert) January 10, 2024
Buyers seem to lack the strength to drive the price up. Analyzing the 4-hour chart of XRP/USD, we can see that the cryptocurrency has been consolidating between the $0.55 and $0.58 price range since January 3. If you pay attention to the RSI on the chart, it is noticeable that the buying momentum has been sluggish.
Currently, the RSI stands at 45.57. The recent trend indicated by the RSI suggests that buyers have made repeated attempts to push the price of XRP higher, but have been unable to hold the uptrend. This is one of the reasons why the cryptocurrency failed to retest the $0.60 area. If the buying pressure does not resume soon, there is a possibility that the XRP price could fall to the $0.55 support level.
Analyzing Chaikin's Cash Flow (CMF), we can see that the figure has dropped to -0.02. CMF measures the pressure exerted by buyers and sellers over a certain period. A positive CMF value indicates an increase in buyer pressure on XRP, while a negative CMF value indicates an increase in seller pressure. If the CMF value falls further into the negative zone, XRP risks falling from the $0.55 support level.
Additionally, data from Coinglass shows that XRP's open interest (OI) has dropped significantly. OI currently stands at $476.53 million.Open interest represents the total number of open positions in a contract and fluctuates based on net positioning. A decrease in open interest means an increase in positions being liquidated. In the case of XRP, a decrease in OI indicates a lack of strength for a potential uptrend.
Given the significant withdrawal of 36.96 million tokens from #MEXC and the decline in open interest, it is likely that XRP is more likely to fall to the $0.55 support level rather than rise to the near-term resistance of $0.58.
In conclusion, current market conditions and indicators point to a bearish outlook for #XRP with a potential decline towards the $0.55 support level.
