XRP remains dormant while whales accumulate

October 9, 2020 Editor Ripple 0

  • Currently, the bulls are struggling to break above the 50-day SMA curve.
  • Repeated rejections may drop XRP to 200-day SMA ($0.22) or the lower boundary of the descending parallel channel ($0.20).
  • Breaking past the 50-day SMA can push the price up to $0.31.

XRP/USD is currently priced at $0.25 and is struggling to break above the descending parallel channel. The 50-day SMA curve has turned out to be a powerful resistance level, which has so far pushed the price down and prevented the cross-border remittances token from truly blossoming, while the rest of the crypto market enjoyed significant gains this Friday. As previously reported, Bitcoin is aiming for $12,000, while TRX is eyeing up $0.031. So, what’s preventing XRP from enjoying similar gains? Let’s take a look at the technical picture.

XRP/USD daily chart

The price is still contained between the 50-day SMA and 100-day SMA which is forcing XRP to consolidate instead of breaking out in either direction. However, Further rejections from the 50-day SMA may result in a pullback that pushes XRP all the way down to the 200-day SMA ($0.22).

But if the selling pressure is significant enough, it might prove to be catastrophic for the cross-border remittance token since the next viable support lies at the lower boundary of the descending parallel channel ($0.20).

How can the bulls flip this bearish outlook?

Currently, the bulls have a very simple task at hand. Push the price up and flip the 50-day SMA from resistance to support. If they manage to do that, then not only will they gain a strong support level, but they will also have the ability to send XRP up to $0.31 where they may encounter the next resistance level.

There are two indicators that buyers will look to count on to launch their counter-attack. Firstly, the MACD is still showing sustain bullish momentum. Secondly, XRP whales activity based on Santiment’s holder distribution chart may hint a spike in buying pressure.

Ripple Holders Distribution

fxsoriginal

According to the chart, over the past 48 hours, the number of addresses holding >1 million XRP has gone up by two. While this may not sound like much, keep in mind that we are talking about addresses currently holding hundreds of thousands of dollars worth of XRP. This shows that some whales are still consolidating their positions, which is a positive sign overall for XRP.

Key price levels to watch

The 50-day SMA is the key for Ripple as of now. Repeated rejections at this level may empower the bears to drop the price down to the 200-day SMA ($0.22) or the lower boundary of the descending parallel channel ($0.20). However, if the bulls manage to break above the 50-day SMA curve, they have a clear path to $0.31.