The price of Ripple (XRP) fell by almost 4 percent yesterday after a wave of institutional sell orders caused a break below the important resistance around 3 dollars. This put the currency under pressure again. For the time being, the price has found support around $2.85. What now?
Institutional selling puts pressure on XRP
XRP trading volume was almost seven times higher than average, indicating significant liquidation waves. In total, more than $500 million in long positions were liquidated, according to market data. As mentioned, the price found support around $2.85 and now appears to be horizontally consolidating at this level.
The downward move coincides with increasing uncertainty surrounding Ripple’s application for a U.S. national banking license. The regulator, the Office of the Comptroller of the Currency (OCC), should rule on this application this month. The result could have a direct impact on institutional demand for XRP.
At the same time, broader macroeconomic factors play a role. Trade tensions and divergent monetary policies from central banks are causing reduced liquidity in both the forex and crypto markets. That also affects XRP.
Technical levels under pressure
Then we will take a closer look at the technical picture. The zone between roughly $3.05 and $3.10 currently acts as strong resistance. The price was recently rejected here for the third time and has fallen sharply since then. The price is now at risk of falling to the support zone around $2.75.
If the price holds the current support of $2.85, this would mean a higher low compared to the recent bottom at $2.75. So there is no reason to panic yet. But for new highs, the purple resistance zone must be broken.
On Binance, meanwhile, XRP reserves increased by 19 percent this week. This is a signal that may indicate selling by large holders. At the same time, on-chain data shows only limited accumulation by so-called whales.
Source: https://newsbit.nl/xrp-zakt-onder-3-na-liquidatie-van-500-miljoen-aan-longposities/
