XRP Price Flounders as 36.96M Tokens Transferred off of MEXC

According to the Whale Alert X handle, a whale moved Ripple (XRP) worth $20.98 million from the MEXC exchange to another wallet on December 10. This transfer happened as XRP continued to trade sideways following its tumble from $0.63 on January 3.

Whale Alert

XRP was trading at $0.56 at press time following a 10.25% plunge in the last seven days. Despite the lackluster performance, the substantial outward transfer from MEXC to a non-exchange wallet suggests at least one whale has faith in the long-term potential of XRP.

Buyers Have No Strength

Based on the 4-hour XRP/USD chart, the cryptocurrency has been consolidating between $0.55 and $0.58 since January 3. Coin Edition observed the RSI on the chart and noticed that the buying momentum has been slow.

As of this writing, the RSI was 45.57. The recent trend shown by the indicator revealed that buyers have repeatedly tried to push up the XRP price many times, but failed to sustain an uptrend.

This was one reason the cryptocurrency has failed to retest the $0.60 region. If buying pressure does not resume anytime soon, the price of XRP might dump into the $0.55 support.

A look at the Chaikin Money Flow (CMF) showed that the indicator had dropped to -0.02. The CMF measures buying and selling pressure within a given period. If the reading was in positive territory, it would have implied an increase in buying pressure for XRP.

However, the negative reading of the CMF showed that there was more selling pressure. Should the reading drop further into the negative zone, XRP risks falling from the $0.55 support.

XRP/USD 4-Hour Chart (Source: TradingView)

Liquidated Positions May Send XRP Down

Like the price action, Coinglass data showed that XRP’s Open Interest (OI) had plunged. At press time, the OI was down to $476.53 million.

The Open Interest refers to the sum of all open positions in a contract. It decreases or increases based on net positioning. When the Open Interest, it means market participants are increasing their net positions.

On the other hand, a decrease suggests an increase in positions liquidated. In terms of the XRP price, the decrease in the OI suggests a lack of strength for a possible uptrend.

XRP Futures Open Interest (Source: Coinglass)

Therefore, XRP appears more likely to slip toward its support at $0.55 than climb to the immediate resistance at $0.58.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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