XRP’s recent surge in price has brought about a significant uptick in whale activity for the sixth-largest digital currency. The asset is currently up by 14.2% in the last 24 hours, trading at [or_text model=”openai/gpt-3.5-turbo” prompt=”You are a news editor expand and Rewrite the following article, remove references to the source, make sure the generated article is well written, makes sense and is SEO enabled:
XRP’s recent price rally brought a significant increase in the asset’s whale activity. At this point, a key indicator shows a sell signal for the sixth-largest digital currency.
XRP is up by 14.2% in the past 24 hours and is trading at $0.69 at the time of writing. The asset’s market cap is currently standing at $37.8 billion with a daily trading volume of $7.2 billion.
XRP price, whale activity, open interest, funding rate and RSI – March 12 | Source: Santiment
According to data provided by Santiment, the number of whale transactions consisting of at least $100,000 worth of XRP increased by 205% over the past 24 hours — rising from 770 to 2,347 unique transactions per day.
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Following the heightened whale activity, XRP’s Relative Strength Index (RSI) also hiked from 62 to 72 over the past day, per Santiment data. The indicator suggests that XRP is slightly overheated at this point and high price volatility would be expected.
For XRP to remain bullish, its RSI would need to cool down below the 60 mark.
Data from Santiment shows that the XRP price-daily active addresses (DAA) divergence dropped to negative 29% at the reporting time. When the number of active addresses declines while an asset’s price increases, the price DAA divergence indicator shows a sell signal.
On the other hand, XRP’s total open interest (OI) surged from $635 million to $845 million over the past 24 hours. Surprisingly, the XRP Binance funding rate also increased from 0.05% to 0.08% in the same timeframe.
This shows that the ratio of investors betting on a further price rally has increased despite the overheated market conditions. If the price of XRP falls, traders might witness a large amount of longs being liquidated.
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“].69 with a market cap of .8 billion and a daily trading volume of .2 billion.
According to data from Santiment, whale transactions involving at least 0,000 worth of XRP increased by a staggering 205% in the past day, jumping from 770 to 2,347 unique transactions per day. This surge in whale activity has led to XRP’s Relative Strength Index (RSI) climbing from 62 to 72, indicating that the asset is somewhat overheated and could experience high price volatility.
In order for XRP to maintain its bullish momentum, its RSI would need to cool down below the 60 mark. Additionally, the XRP price-daily active addresses (DAA) divergence has turned negative, signaling a sell signal as the number of active addresses decreases while the asset’s price rises.
Despite the overheated market conditions, XRP’s total open interest has surged from 5 million to 5 million within the last 24 hours. Furthermore, the XRP Binance funding rate has increased from 0.05% to 0.08%, indicating that more investors are betting on a further price rally.
If the price of XRP were to decline, traders could potentially see a significant number of long positions being liquidated. This increase in bullish sentiment amidst an overheated market highlights the potential risks and rewards associated with trading XRP in its current state.
