XRP, the popular cryptocurrency, has recently seen a significant on-chain transfer of 300 million XRP, valued at over $629 million. This transfer has sparked speculation about Ripple’s next move, with many believing it could signal a strategic push involving institutional partnerships or internal liquidity adjustments. The timing of this transfer has raised questions about whether XRP is preparing for a major breakout, as the cryptocurrency has been consolidating near a key support level and showing signs of volatility.
At the time of writing, XRP was trading at $2.11, down 1.39% over the past 24 hours. The cryptocurrency has been consolidating within a range between $2.02 and $2.45 since January, with these levels being closely watched by traders. If XRP breaks below $2.02, it could revisit lower levels around $1.80, while a breakout above $2.45 could lead to a retest of $2.95. The current price structure indicates that XRP is at a decisive point where its direction could soon shift sharply.
Traders have been increasing their use of leverage, with the estimated leverage ratio rising by 1.02% over the past 24 hours. This suggests that traders are expecting big price movements soon but also increases the risk of cascading liquidations during market swings. Recent liquidation data shows that more long positions were liquidated compared to short positions, indicating bullish dominance. However, if support levels fail, even more long positions may unwind, leading to further downside.
Whale activity has also been increasing, with a rise in whale-to-exchange flow and 886 whale transactions recorded. This movement from large holders toward exchanges, combined with the massive XRP transfer, suggests that whales may be repositioning themselves ahead of potential announcements or events. While this activity is not outright bearish, it could lead to increased short-term volatility in XRP’s price.
Overall, Ripple seems to be positioning itself for a major breakout, with the recent transfer, rising leverage, and whale activity pointing to growing anticipation. However, for this bullish momentum to be validated, XRP must hold above the crucial support level at $2.02. If this level holds and Ripple delivers a strong fundamental catalyst, XRP could surge towards its next resistance at $2.45 and potentially beyond. Traders should keep a close eye on key support and resistance levels to gauge the potential direction of XRP in the near future.
