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Amid the XRP price rally, its Relative Strength Index (RSI) surged from 62 to 72 in the past day, indicating a slight overheating of the token.
On Monday, March 211, Ripple’s native cryptocurrency XRP witnessed a strong 20% price gain shooting all the way to $0.75. At press time, XRP price has partially retraced back and is trading at $0.70 with a market cap of $38.12 billion. The trading volumes for XRP in the last 24 hours have surged by a staggering 263% all the way to $7.37 billion.
XRP Sees Massive Whale Transfer
Whale Alerts, a tracker of large cryptocurrency transactions, has unveiled several significant XRP transfers that happened within 24 hours on Monday, signaling a resurgence of bullish sentiment in the market. Notably, five substantial transactions during this period originated from the cryptocurrency exchange Binance. The interesting thing here is the transfer of 94 million tokens from Binance to undisclosed wallets.
According to Whale Alerts data, a total of five separate transactions totaling over $57 million were initiated from Binance, each involving 18 million XRP. While this significant movement suggests increased interest from major investors, the consistent pattern of accumulation hints at a single entity executing these transactions.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 300,000,000 #XRP (187,134,686 USD) transferred from #Binance to unknown wallethttps://t.co/n6uoHsu3BZ
— Whale Alert (@whale_alert) March 8, 2024
These transfers unfolded throughout Sunday, commencing with an initial transfer of 18.76 million tokens valued at $11.7 million from Binance to an undisclosed wallet. Subsequent transactions involved the movement of 18.4 million, 19.2 million, 18.8 million, and 18.7 million tokens, amounting to $11.26 million, $11.47 million, $11.19 million, and $11.69 million, respectively, into private wallets.
There’s a high chance that Binance could have executed these transactions, as the on-chain data shows the activation of all recipient addresses on the same day by the exchange.
XRP Price Rally and On-chain Data
After some underperformance in comparison to the rest of the altcoin market, the XRP price surge comes as a sign of relief to investors. The surge in XRP’s value may indicate a shift among traders, who could be reallocating some of their capital to tokens that have yet to experience significant movement, signaling a broadening rally across digital asset markets.
According to Santiment data, XRP’s Relative Strength Index (RSI) surged from 62 to 72 in the past day, indicating a slight overheating of the token. This increase suggests a likelihood of heightened price volatility. To sustain its bullish momentum, XRP’s RSI would ideally need to cool down below the 60 mark.
Additionally, Santiment’s data reveals that the XRP price-daily active addresses (DAA) divergence reached negative 29% at the time of reporting. A negative divergence indicates a sell signal, signifying a decrease in active addresses despite a rise in price.
Courtesy: Sanitment
Conversely, XRP’s total open interest (OI) rose from $635 million to $845 million within the last 24 hours. Simultaneously, the XRP Binance funding rate increased from 0.05% to 0.08% during the same period.
Despite the market’s overheated conditions, this surge in open interest suggests an increasing number of investors are betting on a further price rally. However, should XRP’s price decline, traders may witness a significant liquidation of long positions.
