Once again, the price of XRP faced rejection from a crucial resistance zone, which could trigger a strong bearish pullback. Technicians are not completely favoring the bulls, suggesting a potential downturn, but market sentiment remains somewhat bullish, keeping hopes of a rally alive. However, the price of XRP needs to stay above a certain support zone, as a failure could invalidate the bullish thesis.
In recent days, XRP witnessed enormous transfers of over $350 million, with key movers identified as Ripple and Crypto.com. Reportedly, they have moved nearly 50 million and 94.3 million XRP, while the receiving wallets remain anonymous. However, past patterns suggest that these funds may be intended for OTC deals or liquidity provision. On the other hand, Ripple offloads XRP to cover operations and stabilize the markets.
Along with this, Ripple also burned 4 million RLUSD after a minting pause, hinting at ongoing adjustments in Ripple's stablecoin strategy as it tests market dynamics. With no new RLUSD minted in the last two weeks, all eyes are on XRP's next move as it prepares for potential price action amid increasing whale activity.
The price of XRP appears to be stuck within a crucial phase, as a small bearish divergence could validate a strong bearish move. The 50/200 day MA has converged, showing the possibility of a potential bearish crossover. Additionally, the Gaussian channel has just turned bullish, hinting at an increase in bullish dominance that may push the price back to the resistance zone. Meanwhile, the RSI has plummeted and is approaching the average range along with the CMF, suggesting a decline in buying volume and volatility.
Therefore, it is believed that the price of XRP will maintain horizontal consolidation between $2.5 and $2.6 for a while, and with an increase in bullish pressure, a breakout to $2.83 seems imminent. With this, the path towards $3 could become quite clear, potentially pushing levels towards a new ATH.
