XRP whales on Binance crypto exchange are indicating that the cryptocurrency may be on the verge of a short-term rally. The analysis of XRP wallets holding 100K to 1M coins on Binance – along with the Aroon timing indicator – shows that the digital asset may finally break through the $1.54 resistance level.
XRP whale activity on Binance suggests a rally
XRP whales on Binance holding 100K to 1M coins are showing interesting behaviour. While XRP inflows to the exchange are still dominating the outflows, there has been a noticeable absence of any strong selling pressure.
In simple words, aggressive unloading of XRP coins in the market remains weak. It shows that XRP whales are not yet convinced about leaving the market.
The following chart shows the Aroon indicator on the lower panel. The Aroon Up line, shown in blue, is around 85 percent, hinting that buyers are still maintaining control of the upward momentum from a trend timing perspective.
Meanwhile, the Aroon Down line, shown in red, has dropped to around 7 percent. This plunge in the line shows that XRP’s bearish trend is losing its timing strength.
For the uninitiated, the Aroon indicator measures the strength and timing of a trend by tracking how recently an asset made its highest high and lowest low within a selected period.
A high Aroon Up value signals strong bullish momentum. On the other end of the spectrum, a high Aroon Down value suggests bearish momentum is developing underneath.
By combining these two datapoints, the XRP whale wallet behavior and the Aroon indicator reading, it becomes clear that although the large transfer activity is still on, the ongoing selling pressure is not turning into a sustained and aggressive sell-off.
The trend timing indicator clearly favors the bullish side over the bearish side. Instead of a sharp collapse, the market structure appears to be dominated by the consolidation phase.
Cautious optimism is necessary
While the Aroon indicator and the trend timing indicator suggest a brewing rally for XRP, the elevated coin inflows to Binance should not be ignored. Large exchange inflows like these can sometimes create delayed selling pressure on the underlying asset.
As a result, even if the market structure looks overwhelmingly bullish for the time being, it won’t be surprising to see the whales use this optimism as a selling opportunity
However, further exchange data from Binance shows that XRP is witnessing a bullish volume surge on the platform. Specifically, the cryptocurrency’s z-score on Binance surged to 2.2 on Monday, reigniting hopes of the beginning of an uptrend.
