XRP appears to be losing momentum after a substantial rise, as whales send millions of tokens to exchanges, leading to increased selling pressure. Whale Alert reported a dump of 30.17 million XRP on Coinbase, while CryptoQuant noted a rise of 34 million XRP in exchange reserves. Meanwhile, XRP is battling technical resistance around $2.60 and a crucial support level at $2.30. In this article, we delve into the causes of this situation and the potential implications for XRP’s price forecast.
Whales Dump Millions of XRP on Coinbase
In a post on X, Whale Alert noted that an unknown wallet dumped a substantial amount of 30.17 million XRP tokens, worth $76.34 million, onto the Coinbase exchange.
— Whale Alert (@whale_alert) January 12, 2025
Additionally, the on-chain analytics firm CryptoQuant has noted that exchange reserves increased by 34 million XRP over the past 48 hours. This metric indicates that long-term holders are starting to move their assets to exchanges, which may suggest a possible sell-off and increasing selling pressure.
Exchange reserves. Source: CryptoQuant
These sell-off signals and notable XRP transactions occur while the altcoin also seems to be losing technical strength.
XRP Crashes Towards Crucial Support Levels
After XRP’s recent breakout above a critical descending trendline, traders expected a significant rally. However, the price has reverted to $2.40, suggesting that momentum is waning rather than gaining. Let us examine the causes of this sudden slowdown and the potential impacts on the market.
Although XRP managed to break above the descending trendline, the rally failed to maintain sustained momentum. This indicates that there was little buying pressure after the breakout, which is essential for continuing a rally. XRP is now more vulnerable to selling pressure from whales, as previously discussed, given that it did not convincingly close above $2.50, undermining bullish confidence.
XRP Price. Source: TradingView
In the broader crypto market, a phase of risk reduction is taking place, with traders taking profits after recent increases. This pattern is especially visible in assets like XRP, which have already experienced significant profits. Decreased risk appetite limits capital inflow into XRP, further hindering price gains.
Around $2.60, XRP faces significant resistance, which hampers upward price movement. This resistance, combined with declining volume, indicates that traders are hesitant to push the price higher without stronger catalysts.
A critical support point to watch is the $2.30 level, corresponding with the 50 EMA. If XRP breaks through this boundary, it could test lower support levels, such as $1.69 or even $1.20.
Currently, the RSI is neutral around 57, indicating market uncertainty. If selling pressure persists, XRP may fall further, especially if the broader market remains cautious. However, a strong recovery from the $2.30 support level could reignite optimism and enable a new breakout attempt.
Possible Alternatives to XRP
Despite Ripple’s strong rise in November, the coin now seems to be losing momentum, while other cryptos present more attractive opportunities. Particularly, coins currently in the presale phase offer investors a unique chance to enter at low prices, potentially achieving much higher returns.
Wall Street Pepe (WEPE)
Those familiar with Pepe the Frog are well aware of the meme’s enormous earning potential. The original PEPE meme coin has a market cap of over $7.4 billion. This is precisely why the presale of Wall Street Pepe (WEPE), the smart alternative to traditional Pepe the Frog, has become a remarkable success.
Currently, WEPE has raised over $47 million in funds. This achievement once again highlights how attractive a meme coin like WEPE is. What sets this presale apart, however, is that it offers much more than just the meme aspect.
The creators of this cryptocurrency have established a private community exclusively for WEPE traders. Within this community, they provide accurate guidance on the optimal timing for buying the coin. Once you and other traders have purchased the coin, they then promote it on public platforms. This strategy results in price increases, giving you the opportunity to sell your WEPE quickly for a profit.
Visit the official Wall Street Pepe website
Solaxy (SOLX)
In a cryptocurrency landscape largely influenced by meme coins, it is easy to overlook the existence of crypto projects that fulfill various functions and offer benefits to both traders and developers. Fortunately, Solaxy (SOLX) shows that utility-driven coins can represent a valuable investment opportunity.
Solaxy functions both as a network and as a cryptocurrency. The Solaxy network specifically serves as a layer 2 solution built on the Solana blockchain. As you may know, the Solana network is characterized by its fast transaction speeds and low costs, making it particularly suitable for developing meme coins. However, it is less effective for decentralized finance (DeFi) applications due to frequent transaction errors and insufficient liquidity.
By utilizing both the Solana blockchain and Ethereum, Solaxy has successfully addressed these problems. As a result, the network is marked by speed, cost-effectiveness, and reliability. Therefore, it is only a matter of time before a significant number of DeFi developers migrate to Solaxy. This will then positively impact the token price.
Visit the official Solaxy website
Best Wallet (BEST)
Like Solaxy, Best Wallet (BEST) represents a project that also provides utility within the market. However, unlike Solaxy, Best Wallet does not focus on a specific blockchain or network; rather, it encompasses a comprehensive crypto ecosystem. This ecosystem includes a cryptocurrency wallet, a decentralized exchange, and a debit card with 8% cashback.
The rapid growth of this platform is remarkable, as it has surpassed one hundred thousand users on both Android and iOS. This development bodes well for the value of BEST, the native token of the platform. An increase in the number of users engaging with Best Wallet correlates with increased demand for BEST.
Owning $BEST provides users with numerous benefits. This allows for lower transaction costs, both on the exchange and through the debit card, while also granting access to exclusive presales of the latest coins that are only available on Best Wallet.
