Whales Resume Accumulating XRP. Will It be Enough to Push Prices Higher?

XRP is trading at $1.36, up a few percent from its opening price. The bulls resumed buying a few hours ago, and it appears they are not slowing. If they maintain the ongoing buying pressure, it will post its first green after two days of consistent decline.

In hindsight, the last two days were some of the most bearish for the coin. On Sunday, it lost almost 3% and retraced to $1.37. The downturn extended into Monday, causing it to shed 3% after an uptick in the early hours. In summary, it lost almost 6% over the last two days.

While XRP is currently trading above its opening price, it experienced notable selling pressure during the first half of Tuesday. One outlook noted that it printed its first green candle after several days of trading close to bollinger’s lower band on the 4-hour chart. It added that, given the consistent decline, a rebound was imminent. The altcoin has since fully erased its previous losses and reclaimed $1.36.

Recent data from Glassnodes explains why the surge happened. The image below shows the cost basis of several cohorts. A closer look reveals a bright yellow line, indicating where many investors bought. They accumulated over 1.8 billion units at $1.78. However, the asset is trading below the key level at the time of writing.

Upon closer inspection, there are several green lines and dots representing purchased units, ranging from $1.42 to $1.21. It means that investors have resumed buying after losing the CB at $1.78. However, there are questions about whether the current pressure is enough.

Is This Enough to Push XRP?

XRP is yet to see a massive accumulation like the one seen a few months back. Nonetheless, prices are improving as spot-market buying and other factors push them higher. Given that buying at this level is sparse, the expected massive hikes may not happen.

If current conditions remain unchanged, the asset will lose its upward momentum. It may resume the downtrend before the week runs out.

Aside from the spot market, the derivatives are currently bearish. Investors are slightly more negative and shorting to profit from the decline. As at the time of writing, short positions account for 50.4% of total open interest. Their fears are understandable as liquidations over the last 48 hours exceeded $920 million, with the bulls being the top losers.

In summary, the current buying pressure is not enough to trigger a massive surge. The risk of further decline in the coming days is high as derivative traders remain bearish amid the price rebound.

Aside from onchain data, the 1-day chart shows some indicators flipping negative. One such is the moving average convergence divergence, which displayed a bullish crossover a few weeks ago. Another crossover may occur soon, as the 12- and 26-EMA are closing the gap between them. This time, it’s the reverse, heralding further decline.

Additionally, the bollinger bands show that the SMA has been a resistance for a while, and after prices test it, they retrace to the lower band. XRP came close to testing the lower line but halted. The retest will occur if buying pressure remains unchanged. 

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