• 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

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

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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP