Key Takeaways
- XRP price has reclaimed the 200 EMA, but price action suggests the asset is on edge — if it fails to break above the $2.70 level, a massive drop could follow.
- XRP exchange reserve on Binance has increased by 21 million over the past 72 hours, signaling a potential sell-off.
- An expert notes that the TD Sequential indicator has flashed a sell signal for XRP.
After four consecutive green candles and a solid price uptick, Ripple’s native token XRP has reclaimed its 200-day Exponential Moving Average (EMA), hinting that a major rally could be on the horizon.
However, growing investor participation and experts’ cautious outlook suggest the asset might not only erase recent gains but could also face renewed downside pressure.
21 Million XRP Moves into Exchange
Data from the on-chain analytics platform CryptoQuant reveals that whales and institutions continue to dump XRP, as the exchange reserve on Binance has surged significantly in recent days. According to the data, over the past 72 hours, XRP’s Binance reserve increased by 21 million between October 24 and October 26, rising from 2.727 billion to 2.748 billion.
This surge in the XRP exchange reserve typically signals a potential sell-off and serves as a red flag for token holders, as it occurred during a period when XRP’s price was witnessing upward momentum.
Expert Bearish Outlook
In addition, a well-followed crypto expert shared a post on X today, noting that the technical indicator known as TD Sequential has just flashed a sell signal for XRP. The post gained massive attention from crypto participants, as it came when the price was approaching a key resistance level at $2.70.
Current Price Momentum
With these developments, the XRP price has been moving sideways near the key resistance level of $2.70. As per the latest data, the asset is currently trading at $2.65, recording a 0.20% price decline. However, trader and investor participation has increased notably, as reflected in the trading volume, which jumped 22% to $4.85 billion, according to CoinMarketCap.
Also Read: $3 Million XRP Hack Exposes Cold Wallet Misuse and Predatory Recovery Firms
XRP Price Action and Technical Outlook
According to TimesCrypto’s technical analysis, XRP is currently approaching the key resistance level of $2.70. Previously, when the asset’s price reached this level, it experienced a notable dip. However, this time there are no clear signals except for experts’ bearish outlook and the massive transfer of assets from wallets to exchanges.
Based on the current price action, if the XRP price fails to break above the key resistance level, history may repeat itself. On the other hand, if it successfully breaks out and closes a daily candle above the $2.70 level, it could experience a massive price uptick and potentially reach the $3.10 level in the near future.
As of now, XRP is receiving support from the 200-day Exponential Moving Average (EMA) on the daily chart, indicating that the asset is in an uptrend. At the same time, the Relative Strength Index (RSI) stands at 52, a neutral zone that’s neither overbought nor oversold, indicating that the next major price move could depend on a shift in market sentiment.
