XRP, whales and ETF money are pouring in...charts show 'sell alert'

▲ XRP, bear market, downtrend/AI generated image

While whale and ETF funds are pouring into XRP, technical trends are warning of further downside risk.

According to FXStreet on September 10 (local time), XRP fell for two consecutive days, retreating from its August high of $1.70. Middle East tensions and rising international oil prices are weighing on investor sentiment in the cryptocurrency market. The market is also closely watching the US Consumer Price Index (CPI) and the Federal Reserve's (Fed) monetary policy decisions. K33 Research cited the Producer Price Index (PPI) and Consumer Price Index announcements, as well as the Senate vote on the US cryptocurrency market structure bill on September 15, as key volatility factors.

Despite price adjustments, whales are increasing their XRP holdings. According to Santiment, the supply share held by wallets with 100,000 to 1 million XRP increased from approximately 9.3% to 9.4% on September 3. In contrast, wallets holding 1 million to 10 million XRP began taking profits after rising from $1 to $1.70. The supply share of these wallets has remained stable at 5.8%.

Institutional funds flowing into US spot XRP ETFs also increased. Daily net inflows jumped from $1.5 million to approximately $12 million. Cumulative net inflows reached approximately $1.7 billion, and net assets were $1.5 billion. FXStreet analyzed that while whale and institutional demand continues, sustained buying pressure is needed to translate into a strong rebound.

Technically, $1.36, where the 200-day exponential moving average lies, is the first defense line. The Relative Strength Index (RSI) remains in the mid-50s, not strongly leaning towards either an uptrend or downtrend. On the other hand, the Moving Average Convergence Divergence (MACD) has moved into negative territory, indicating that short-term corrective pressure remains. If $1.36 breaks, $1.27 (50-day exponential moving average) and $1.24 (100-day exponential moving average) are the next support levels.

During a rebound, $1.40 is the first resistance level. Subsequently, the Parabolic SAR, located at approximately $1.58, is considered a key hurdle. FXStreet analyzed that if the daily candle closes above $1.58, the upward trend could strengthen again. Conversely, if it fails to break this range, price correction above the exponential moving average could continue.

[Article Key Summary]

-Among XRP whales, the supply share of wallets holding 100,000 to 1 million XRP increased from 9.3% to 9.4%.

-Daily net inflows into US spot XRP ETFs increased from $1.5 million to approximately $12 million, with cumulative net inflows reaching approximately $1.7 billion.

-For XRP, $1.36 is a key support level, and if that price breaks, $1.27 and $1.24 are suggested as the next downside targets.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*