The Bit price has maintained a consolidation phase over the past month, growing only a modest 2.2% in the last 30 days. Although a golden cross pattern formed earlier this month, signaling potential bullish momentum, whale activity suggests a lack of accumulation, which could further dampen the chances of a price increase.
The Chaikin Money Flow (CMF) indicator for XRP remains positive, emphasizing persistent buying pressure, however, the indicator has slightly declined from its recent peak. These factors suggest that the price outlook for XRP will largely depend on whether it can break above the resistance level at $2.53 or face selling pressure at the support level of $2.33.
XRP Whales Pause Accumulation
The number of XRP whales holding between 10 million and 100 million XRP has decreased to 296, the lowest level since December 24. After reaching a peak of 301 on December 25, the number of these large holders has been steadily declining.
This represents a significant shift in whale activity, as their number had previously reached a monthly high of 305 on December 7, coinciding with XRP's price surpassing $2.50.
Monitoring whale activity is crucial as these large holders can significantly impact the market. Their accumulation often signals confidence in a cryptocurrency and can drive prices higher, while a decrease in their numbers typically indicates selling pressure or waning interest.
The recent decline in the number of whales suggests negative sentiment among major investors, which could negatively affect the Bit price in the short term. Unless whale activity stabilizes or reverses towards accumulation, XRP may struggle to regain its growth momentum.
XRP's CMF Reaches Monthly High
The Chaikin Money Flow (CMF) indicator for XRP is currently at 0.28, maintaining a positive position since January 1, when it was near 0. The CMF has shown an upward trend in the new year, signaling increasing Capital inflows as buying pressure outweighs selling pressure.
This positive CMF reflects growing investor confidence and suggests that XRP is attracting attention from market participants.
CMF is a volume-based indicator that measures the flow of Capital in and out of an asset based on price and volume. A value above 0 indicates net buying pressure, while a value below 0 suggests net selling pressure. Although XRP's CMF reached a peak of 0.33 a few hours ago and has since dipped slightly to 0.28, it remains in positive territory.
This suggests that while buying momentum may have eased slightly, the overall trend is supportive of price stability or a mild increase in the short term, as long as the CMF does not continue to decline.
XRP Price Forecast: Potential 19.6% Correction
The Bit price is currently trading in a narrow range, between the resistance level of $2.53 and the support level of $2.33. The formation of a golden cross pattern on January 1 has fueled the recent price increase, signaling strong bullish momentum.
However, indicators such as the decrease in whale accumulation and the slight decline in CMF suggest that the current uptrend may be losing steam.
If the support level at $2.33 fails to hold, the Bit price could face increased selling pressure, leading to a decline towards $2.13. A breakdown below this level could push the price further down to $1.96, marking a potential 19.6% correction.
Conversely, if the bullish trend regains momentum and the Bit price breaks above the $2.53 resistance, the next target could be $2.72, representing a potential 10.6% increase.
