Ripple recently locked 800 million XRP tokens in escrow, signaling a potential bull rally. This large locking occurred across three transactions, as confirmed by Whale Alert, a blockchain transaction tracker. By locking a significant portion of XRP, Ripple creates market stability, which often boosts investor confidence. As a result, many believe this move may lead to a price surge in the near future.
XRP Locking and Market Impact
Ripple’s decision to lock 800 million XRP could have substantial effects on the cryptocurrency market. Typically, such actions decrease the token’s immediate availability, potentially increasing its demand. The locking aligns with Ripple’s long-term strategy to manage token distribution and minimize excessive market fluctuations. Consequently, investors are speculating whether this will prompt buying pressure and fuel a significant rally.
Current XRP Price and Market Sentiment
At present, XRP is trading around $0.622, having dipped by 1.45% in the last 24 hours. Over the same period, its trading volume has dropped by 50%, suggesting decreased interest from traders. This decline in volume could reflect market uncertainty caused by heightened volatility.
Despite these setbacks, experts believe that if it surpasses the $0.65 resistance level, it could trigger a 12% price surge. This rally could push XRP’s price to $0.74, provided a daily candle closes above the $0.65 mark.
XRP Technical Analysis
Source| TradingViewTechnical analysis reveals XRP is in an uptrend since it remains above the 200 Exponential Moving Average (EMA) on the daily chart. However, it is struggling to break through the strong resistance at $0.65. A bearish engulfing candlestick has formed, indicating the possibility of a price reversal if it fails to break this key level.
On-Chain Metrics Reveal Bearish Sentiment
Source| CoinglassDespite the bullish technical setup, on-chain metrics suggest a bearish outlook. Coinglass reports that XRP’s Long/Short ratio is currently at 0.924, signaling bearish dominance. Furthermore, the open interest in XRP futures has dropped by 4.5%, reflecting liquidations and cautious behavior by investors. Presently, 52% of top traders hold short positions, while 48% hold long positions. These factors indicate bears are currently leading the market.
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Until XRP successfully breaks the $0.65 resistance, further struggles are likely. However, a breakthrough could ignite a significant rally.
The post Ripple Locks 800 Million XRP: Could a Break Above $0.65 Spark a 12% Rally? appeared first on FXcrypto News.
