Key Takeaways
- XRP experienced a 1% dip in the last 24 hours but shows potential for a rally towards $2.80.
- Chris Larsen, a co-founder of Ripple, has reportedly divested approximately $120 million worth of XRP tokens.
Ripple Co-founder Divests Substantial XRP Holdings
Recent on-chain data from CryptoQuant indicates significant outflows totaling $120 million from wallets associated with Ripple co-founder Chris Larsen. This move comes at a time when XRP has seen a 1% decrease in value over the preceding 24 hours.
This notable sell-off coincides with Ripple’s ongoing efforts to secure funding for its potential acquisition of the treasury management company, GTreasury. Ripple had previously announced a $1 billion fundraising initiative specifically for this acquisition.
Despite the announcement regarding GTreasury, the news has not translated into positive price action for XRP. The cryptocurrency has faced considerable selling pressure in recent weeks, mirroring a broader market downturn affecting risk assets like Bitcoin and Ether, which have also experienced significant losses.
💡 Despite a recent 35% decline from its multi-year high of $3.66 in July, there are indicators suggesting a potential upward movement for XRP. The number of XRP addresses holding over 100 tokens has been on the rise, signaling increased accumulation by certain investor segments.
XRP Price Prediction: A Push Towards $2.80 Amidst Bearish Trends
The current XRP/USD 4-hour chart presents a bearish and inefficient market structure, as the cryptocurrency has struggled to rebound following the crash on October 10th. XRP is currently consolidating within a descending parallel channel.
Technical analysis suggests that XRP could approach the $2.80 resistance level in the short term. This $2.80 mark aligns with the 0.618 Fibonacci retracement level, making it a critical zone to monitor as the month draws to a close.
A decisive break above the $2.80 resistance could signal a bullish reversal pattern, potentially paving the way for XRP to target higher levels around $3.05 or even $3.40 in the coming weeks.
📊 The Relative Strength Index (RSI) at 52 suggests that bullish momentum is strengthening. Additionally, the Moving Average Convergence Divergence (MACD) lines are nearing a crossover into positive territory, further hinting at a potential shift in market sentiment.
📍 However, failure to sustain upward momentum could lead to further price depreciation for XRP. The cryptocurrency’s future performance will likely be closely tied to the overall risk appetite within both the crypto and traditional equity markets. Should the prevailing bearish trend persist, XRP could potentially fall below the $2.2 support level in the near future.
Expert Summary
Chris Larsen’s recent sale of $120 million in XRP, combined with broader market pressures, has contributed to a recent price dip for the cryptocurrency. Despite these headwinds, technical indicators suggest a potential short-term rally towards $2.80, contingent on breaking key resistance levels and prevailing market sentiment.