The price of XRP has decreased today, similar to the downturn experienced in other areas of the cryptocurrency market.
XRP lags behind crypto market
The price of XRP fell nearly 1.5% to $0.50 on September 5, trailing the overall crypto market, which declined approximately 1% during the same timeframe. This drop coincided with an increase in the U.S. Dollar Index. The relationship between the dollar and cryptocurrencies has been persistently negative since July.
The downturn in XRP appears to be part of a sideways consolidation phase. Traders are purchasing and reselling for a profit as soon as there is a price uptick, which has kept its value restricted within a tight trading range of $0.49-0.51.
XRP decline precedes possible whale sell-off
One potential reason for the heightened selling pressure of XRP is significant whale transactions.
For example, on September 3, an unidentified wallet dispatched 29.7 million XRP tokens, valued at around $15 million, to the Bitstamp exchange. While this quantity isn’t substantial enough to sway market trends, the sender is noted as the 98th-richest XRP holder — classified as a whale by data tracked by CoinCarp.
29,700,000 #XRP (15,040,591 USD) transferred from unknown wallet to #Bitstamphttps://t.co/CFhbnG3anf
— Whale Alert (@whale_alert) September 3, 2023
Analyzing distribution among whale addresses reveals trends throughout different cohorts. For instance, the XRP holdings of entities with a balance of 1 million to 10 million tokens (brown) have decreased since September 3.
Likewise, the XRP supply owned by whales with a balance of between 100 million and 1 billion tokens (green) has also diminished during the same time period. Notably, the cohort holding 10 million to 100 million (black) has absorbed the supply from the 100 million to 1 billion balance cohort.
XRP price assessment for September
From a technical perspective, seems to have entered the breakdown phase of its existing bear pennant pattern.
A bear pennant signifies a bearish continuation structure, defined by a price that consolidates within a range limited by a declining trendline resistance and an ascending trendline support. It resolves when the price drops below the lower trendline and descends by as much as the height of the prior decline.
Consequently, following these technical analysis guidelines, XRP’s price faces the risk of descending towards $0.40 in September 2023, approximately 20% lower than the current price points.
On the other hand, a closure above 200-day exponential moving average (EMA), represented by the blue wave, near $0.52 could invalidate or defer the bear pennant breakdown. Conversely, the price could be set to ascend towards the pennant’s upper trendline near $0.54 or the 50-day EMA, depicted by the red wave, around $0.56.
This bullish scenario may provide a price surge of 7-15% in September from the current price levels.
This article does not constitute investment advice or recommendations. Each investment and trading decision entails risk, and readers ought to perform their own research before making a choice.
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