YEREVAN (CoinChatper.com) — The XRP token price has exhibited low volatility in the previous two weeks, consolidating sideways at $0.63, as of Dec 29. However, the sleeping bulls might not be sleeping for long. Let’s take a look at the technical indicators first and then examine the XRP whale behavior for more clues.
XRP Technicals Hint at a 5% Slide
A detailed view of the XRP price action revealed that the token has traded within a symmetrical triangle since its court-driven rally in mid-July. As CoinChapter previously reported, the triangle entails two converging trendlines with a similar slope. They connect the swing highs and lows, predicting a sharp move equal to the maximal triangle height, predicting a win or loss over 60%.
The formation’s final target aside, XRP faces a real possibility of sliding another 5% to the previous support of $0.60, before XRP bulls switch to a more decisive mode. So, let’s take a closer look at the whales and other possible factors that affected the coin.
XRP Whales Back On Track
According to the latest on-chain data, the ranks of XRP whales, i.e., addresses with large amounts of tokens, have filled up since mid-December. In detail, addresses holding over $10 million and $1 million in XRP tokens rose to 422 and 1,370, respectively.
Generally, whale behavior could be construed as a ‘canary in the coalmines’ for a larger demographic of retail investors. They can also influence the market by creating selling pressure if they decide to unload some of their holdings.
However, according to CoinShares’ latest weekly report, institutional investors did not rush to pour their cash into XRP. While there was no outflow in the week ending Dec 24, the inflow also stood at zero.
In conclusion, the available data says that XRP price still has a period of consolidation ahead of it, until large players and overall market sentiment finally decide the outcome. However, the large break is unlikely to happen over the holidays.
Possibly, crypto enthusiasts will see the anticipated sharp move in 2024. Additionally, the SEC vs Ripple lawsuit has a significant effect on the XRP price. Thus, its outcome is likely to determine the price action as well.
To get latest news on XRP, follow CoinChapter!
