Summary
⚈ The SEC delayed its XRP ETF decision, and short positions recently surged.
⚈ Despite bullish buys, whale activity slowed, and a $68.7M transfer hints at selling.
XRP whales seems to have retained a bullish outlook, despite some of the token’s recent challenges
It appears that large accounts — those holding more than 10,000,000 tokens, have purchased approximately 900 million XRP over the past month, noted cryptocurrency technical analyst Ali Martinez, who shared his findings in a May 2 X post.
This bullish signal is a rare sight in an otherwise bearish week. The cryptocurrency’s long-awaited retest of the $2.30 price point that occurred on April 28 and April 29 failed to produce a breakout. Soon after, the Securities and Exchange Commission (SEC) delayed its decision on Franklin Templeton’s XRP spot exchange-traded fund (ETF).
In addition, the ratio of XRP short positions reached a 1-month high on the last day of April, but there are a few silver linings at play
For one, XRP soundly rejected a test of support at $2.20, as that price level held for little more than half an hour. By press time, the token was trading at $2.22, having marked a 0.55% decline in the last 24 hours.
XRP whales are not unanimous regarding the token’s future prospects
While the fact that XRP whales have, on the whole, intensified their acquisitions might appear as a solid bullish signal at first glance, traders should always consider dissenting opinions.
On April 28, one XRP whale transferred 29,532,534 tokens, worth roughly $68.7 million, to cryptocurrency exchange Coinbase. Large transfers such as these usually precede selloffs.
Lastly, it’s important to note that Martinez’s chart clearly shows that whale demand has flattened since April 29 — so the thus-prevailing bullish sentiment on the part of large accounts might very well have already been dispelled.
Featured image via Shutterstock
