XRP whales have sprung into action, are making huge transactions, and are positioning themselves for a rally. This awakening comes at a time when the futures market is lopsided with long positions.
XRP whales accumulate $380 million worth XRP
The dormant XRP whales have risen from their slumber and are actively transferring XRP coins. According to an analyst who goes by the pseudonym Ali Charts, transactions above $1 million have increased by 280%. There were more than 38 such transactions that were recorded on the XRP ledger. Based on Ali’s observation, more than $380 million worth of crypto has been accumulated within the past 24 hours.
XRP price could reverse as bullish divergence occurs
On the technical aspect, XRP is showing a bullish divergence. When XRP is making lower highs and lower lows, the RSI indicator is making higher lows. XRP is showing a bullish divergence, as its price continues to form lower highs and lower lows while the RSI forms higher lows. This suggests that although XRP is still declining, the strength of the selling pressure is weakening.
If the bullish divergence plays out, XRP could eventually stop making lower lows and begin forming a higher low, followed by a move above a nearby resistance level. This could signal that buyers are gaining control and potentially trigger a reversal or relief rally. However, the divergence itself does not guarantee a reversal and needs price confirmation.
It’s not just the technical signals that flash that there could be a reversal, but the futures market is also showing some signs. The futures market is lopsided, and there are more long positions compared to the shorts. As XRP has already experienced a decline, this heavy long positioning indicates that traders are expecting the downtrend to lose momentum and a rebound to follow.
However, there is an important distinction: more longs do not automatically cause a reversal. In fact, if the market becomes too heavily long, it can increase liquidation risk if XRP falls further. For a genuine reversal, you would ideally want to see XRP stabilize, bearish momentum weaken, and long positions remain supported as the price starts moving higher.
If that happens, traders who are positioned long may add to their positions, while short sellers may close their positions, creating additional buying pressure and helping XRP reverse upward.
