Ripple: It's time for XRP holders - Thanks to the Federal Reserve
XRP Whales lead market
XRP has managed to deliver a healthy rally since mid-September as sentiment favors the bulls. Their lead leads to a retest of resistance in May 2022. But alas, the whales have begun to add to the short-term selling pressure.
XRP whales have so far had a huge impact on their performance. For example, the largest whales with more than 10 million coins had net gains from September 15 to 19.
This type of whale controls more than 70% of the total XRP supply. Whales of the same type have reduced their balance in the past two days.
XRP whales holding between 100,000 and one million coins have similarly contributed to the selling pressure over the past two days. However, addresses holding between one and 10 million coins are trending to buy. Thus, the possible adverse effects can be minimized.
The drastic change in sentiment and favorable network developments gave XRP a bullish performance in the middle of the month. The total sentiment-weighted metric turned upside down on September 16, moving from negative to positive.
A similar network growth axis may have contributed to the bullish outcome. These indicators have not changed in the last 24 hours from the time of publication despite the opposite results in terms of price action.
XRP has managed to recover as much as 29% from mid-month levels after demonstrating increased relative strength.
Attempt to resist selling pressure
With that said, it's important to note here that XRP price action has declined slightly over the past 24 hours, confirming significant selling pressure.
This is consistent with the departure of the aforementioned whale. The move comes after XRP retested the long-term support level.
Well, the current selling pressure on XRP suggests that it could be heading for a sizable pullback. However, the common supply on September 21 was low, possibly because buying pressure from some whales created more friction for the bears.
Interestingly, on September 21, the Federal Reserve raised its benchmark interest rate by 3/4 percentage point. After that, XRP dropped 0.50% on September 22.
The resulting bearish price could trigger a deeper pullback. Investors should consider that XRP price action is heading towards support and resistance compression zones. Therefore, a potential breakout could be approaching despite the recent unsuccessful attempt.
Sep 22, 2022