cryptocurrency

Ripple Whales Take Control of XRP Trading as Key Metric Signals Potential Rally

Transactions on the XRP Ledger have been on the rise lately, while some commentators are explaining the importance of the XRP/BTC pair.

Although it was rejected at $2.40 at the beginning of the year, crashed hard the following month, and even its attempt to recap was stopped at $1.65, XRP is still being tested for future gains, noted several analysts at X.

Factors that may drive the impressive rally are whale behavior and the growing use of the XRP Ledger network. Additionally, the XRP/BTC trading pair has reached a critical period that can determine the future price movement of the Ripple token.

Whales Rule

Analyst CW indicated that XRP Ledger transactions have increased recently, which he classified as a “positive signal” in the current macro conditions. This is because investors usually leave the market and transactions fall in bear phases. However, the rise of this metric is now a pattern that precedes a price rally.

In another post, an analyst pointed out the importance of large whales in the XRP ecosystem. They noted that these major market participants continue to dominate XRP trading, maintaining a buying trend. CW added that they continue to collect tokens at prices below $2.40.

This is also considered a bullish signal for the underlying asset, as whales usually buy large quantities which eases the immediate selling pressure. In addition, retail investors tend to follow whales.

XRP/BTC Pair

In a post titled “The Hidden Liquidity Cycle,” analyst EGRAG CRYPTO explained that the XRP/BTC pair shows when “capital is circulating” from the market leader to altcoins. Historically, “XRP explodes” when this happens.

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After noting that the green area (in the chart below) is where XRP has become “overextended” and a possible crash against BTC is coming, and the red area is the opposite, the analyst added that the Ripple token is currently in the accumulation phase of the current cycle.

If it breaks above the silver line, which is currently located at around 0.00003600 SAT, its rally is expected to begin. XRP/BTC is trading around 0.00002000 SAT as of press time.

EGRAG explained, however, that the XRP/BTC liquidity pair tends to move in long cycles of 7-8 years, so this expected rally may take a while before it takes control as late as 2024.

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