XRP continues to show price weakness, as it sank to $2.40. The token is now seeking a support, with some signs of whales buying near the lower range.
XRP has lagged behind other tokens, becoming one of the day’s biggest losers among top 10 coins and tokens. XRP extended its slide to the $2.40 level, after ongoing data of deposits to exchanges and whale selling in the past couple of weeks.
The recent price lows, however, have coincided with renewed accumulation. Whales bought back around 30M XRP in the past 24 hours.
The accumulation still follows October’s more active selling, and has not been reflected in the market price. XRP also shows price weakness as most altcoins have lost the attention of traders. Whales have been affecting the price of XRP for weeks, extending their sales after the October 11 market crash, as reported Cryptopolitan.
Additionally, the selling on October 11 caused long-term damage on the price of XRP. During the sell-off, whales deposited 43M on Binance, crashing the price under $3.
XRP shows trading weakness, long-term optimism
XRP retains its long-term community, convinced the XRPL platform may be suitable for decentralized finance. However, the long-term outlook does not prevent XRP from stagnating.
XRP open interest is just $1.31B, much smaller compared to other top 10 coins and tokens.
Based on the liquidation heatmap, XRP has relatively small accumulation of positions. The token has relatively small liquidity for triggering a short squeeze.
As of October 22, most positions for XRP were up to $2.60, signaling a short squeeze could not cause a recovery above $3.
Binance, Bybit, and Gate see XRP outflows
XRP currently moves through Binance, Bybit, and Gate. The three exchanges saw the most notable outflows in the past week.
Binance held over 3.62B in XRP exchange reserves as of October 16, seeing the number shrink to $3.34B as of October 21.
Balances remained relatively unchanged on Bitstamp and Bitfinex. However, Bybit reserves shrank from 442M to 298M XRP. Gate saw its XRP reserves diminish from 67M to 48M.
The outflows from exchanges may suggest renewed interest after the recent selling round. XRP was not only sold by whales, but by retail traders after the October 11 crash. The asset dipped to a local low of $1.90, later still managing a recovery to $2.50.
Recent sentiment metrics show XRP is mostly the target of negative comments on social media, the lowest level of crowd sentiment since January. The metric suggests the market may move in the opposite direction to crowd sentiment.
XRP may also move in unexpected ways due to its Korean won market, taking up over 13% of trading volumes. The token also trades against Binance’s FDUSD, offering an alternative source of liquidity.
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