- XRP drops 23.39% weekly as SEC appeal uncertainty looms; whale holdings fell from 10.5B to 9.84B XRP, suggesting distribution.
- Exchange outflows signal accumulation, but XRP must hold $2.31 support to avoid a retest of $2. Resistance is at $3-$3.50.
- MACD remains bearish at -0.10, while Bollinger Bands suggest oversold conditions. Whale accumulation could trigger a rebound.
XRP extended its decline as uncertainty loomed over the SEC’s appeal decision in the Ripple lawsuit. The token’s movement remains dependent on the outcome of the legal case. If the SEC withdraws its appeal, XRP may see a price surge.
However, if the case continues, the token could have additional downside pressure. On February 7th, at press time, XRP was trading at $2.36, a 3.95% daily decline and a 23.39% drop over the past week.
Despite this downturn, the token has remained 1.84% higher over the past month. XRP’s market cap dropped by 3.11% to $136.2B, pushing it to the fourth position, behind USDT’s $141.37B market cap.
Whale Holdings Increase as XRP Declines
According to analyst Ali, large holders capitalized on the recent drop, accumulating 520 million XRP. Wallets holding between 100 million and 1 billion XRP initially maintained stable balances near 10.5 billion XRP.
However, holdings declined to 10.42 billion by late January, aligning with XRP’s price shifts. A sharper drop followed between February 2 and February 4, with large holders reducing balances from 10.42 billion XRP to 9.94 billion XRP.
The lowest recorded level was at 9.84 billion XRP, indicating increased whale distribution. The decline in large holders’ balances aligned with XRP’s price fall from $3.09 on January 31 to $2.46 by February 6.
While a slight rebound saw XRP surge from $2.34 to $2.46, sustained selling pressure from whales could push the price lower. If accumulation resumes near $2.50, a potential recovery may emerge.
Exchange Inflows and Outflows
Between April and mid November, XRP traded below $1 with low volatility. Accumulation dominated this period as outflows outweighed inflows. December saw increased inflows, coinciding with XRP’s sharp rise to $3.87.
A shift occurred in January and early February, with substantial outflows, especially on January 25, when over $200 million worth of XRP left exchanges. Consistent outflows in early 2024 suggested accumulation, while December’s sharp price increase aligned with higher inflows, suggesting possible profit taking.
XRP has stabilized between $2.50 and $3, with ongoing outflows suggesting reduced selling pressure. If accumulation persists, XRP may attempt a rebound beyond $3.50. However, increased exchange inflows could indicate renewed selling, leading to a potential retest of $2 support.
Technical Indicators Show Market Sentiment
XRP’s technical indicators show ongoing bearish sentiment, though a potential reversal remains possible. XRP has a high of $2.39 and a low of $2.36. It previously surged past $3.40 in January before correcting downward.
XRP trades near its lower Bollinger Band at $2.31, indicating possible oversold levels. If $2.31 holds, the price could rebound toward the middle Bollinger Band at $2.89, with resistance near $3. A drop below $2.31 may lead to further downside, possibly testing the $2 level.
The MACD line is below zero at -0.10, showing a bearish trend. The MACD crossing below its signal line further confirmed negative momentum. However, a reversal could occur if buying pressure increases, pushing MACD into a positive level.
Trading volume is at 113.11 million XRP, suggesting strong market activity. Volume spikes indicated increased trading interest, led by whale movements. XRP’s short term outlook remains bearish, with critical support at $2.31.
A rebound could happen if accumulation strengthens near this level. However, further downside remains likely if whale selling persists or inflows to exchanges increase. Technical signals, whale behavior, and legal outcome will be essential in predicting XRP’s next price movement.
