Surge in XRP Whale Activity Reveals Emergence of Sell Signal
XRP’s recent surge in price has led to a notable increase in whale activity. A key indicator now indicates a sell signal for the sixth-largest cryptocurrency.
As of now, XRP has risen by 14.2% in the past 24 hours and is currently trading at $0.69. Its market cap stands at $37.8 billion, with a daily trading volume of $7.2 billion.
According to data from Santiment, the number of whale transactions involving at least $100,000 worth of XRP has increased by 205% in the past 24 hours, going from 770 to 2,347 unique transactions per day.
In response to this heightened whale activity, XRP’s Relative Strength Index (RSI) has also increased from 62 to 72, according to Santiment data. This suggests that XRP is slightly overheated at the moment, and we can expect high price volatility.
To maintain a bullish trend, XRP’s RSI would need to cool down below the 60 mark.
Santiment’s data also reveals that the XRP price-daily active addresses (DAA) divergence has dropped to negative 29%. When the number of active addresses decreases while the price of an asset increases, the price DAA divergence indicator indicates a sell signal.
On the other hand, XRP’s total open interest (OI) has surged from $635 million to $845 million in the past 24 hours. Surprisingly, the XRP Binance funding rate has also increased from 0.05% to 0.08% in the same timeframe.
This shows that the number of investors betting on a further price rally has increased, despite the overheated market conditions. If the price of XRP were to fall, traders may witness a significant number of long positions being liquidated.
