XRP has not yet joined, but it hovers near the $ 3 mark, retaining a monthly gain of 35%. However, last week erased more than 5.3% of these gains. And that left the merchants who do not know if a break is close or another leg broken down.
And with the month of August being historically volatile for XRP, the price is seated at a key moment, where it all depends on how traders and whales behave nearly $ 3.00.
Exchange flows and liquidation card indicate a short compression configuration
One of the main reasons why XRP has not seen a clean rally is the increased sales pressure on exchanges. Net entries started to increase, especially after July 30, when the price approached $ 3.00.
A similar decision was observed on July 11, when exchange entries increased to more than 220 million XRP. At the time, the price did not fix it right away. Instead, he climbed beyond $ 3.60, and it was not until later, selling catching up. This indicates that the traders positioned themselves to get out of the summit, keeping funds on the scholarships without selling immediately.
Quick advance towards now: the entries increase again, suggesting that traders can prepare to sell if XRP rises above $ 3.00. But despite this lower configuration, the liquidation card tells another story. It could be revealing of the start of the actual sale.
XRP Bitget’s liquidation data show that the market is always strongly biased towards shorts. Short positions are increasing up to $ 1.6 billion, while long amounted to only $ 784 million. This imbalance means that a sudden ascending movement could liquidate a large number of shorts, setting up a short classic pressure. The current price oscillates almost $ 3.00, a UPMOVE from 10% to 14% could trigger pressure up to $ 3.40.
Note: something similar has happened between July 24 and 27, when the XRP price increased from $ 2.95 to more than $ 3.30 without an obvious trigger. Although this raised doubts of price manipulation, something similar could not be excluded.
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Do whales feed the movement or are they sitting?
Interestingly, whales could also have a role to play in conducting this decision. Exchange whale flow data shows that major holders were aggressively sold during past rallies. On July 30, whale entries increased to more than 55,000 XRP, the highest level in one month, because the XRP price fell by less than $ 3.00. Again, on August 3, the entries hit 38,226 XRP as the price approached $ 3.00.
But since then, the entries fell to 34,140 XRP on August 4, even if the XRP price remains greater than $ 3.00. This shows a divergence: while prices are climbing, whales send less token for exchanges. This could mean that they look carefully. Or this could mean that the sales pressure led by the whales finally released. One or the other of these signals seems optimistic for the short -term XRP price.
However, if the castors of the whales are increasing near the area from $ 3.08 to $ 3.30, this could create sufficient sales pressure to cap the “short-pale” movement. Traders should look closely at the behavior of whales before expecting any sustained rally.
The flow tracks of the whales to the exchange how many tokens of large holders (whales) send centralized exchanges; A high number often points out the intention to sell, while the lower flow may mean that whales hold.
The XRP price model points to the key break at $ 3.30
The current price structure of XRP is located inside a declining enlarging corner, a graphic model often observed before bullish eruptions. The pattern is defined by two lines of divergent tendency sloping down, with a bouncing price between them. XRP is now approaching the higher trend line of this corner, and an escape greater than $ 3.19 would place it firmly on the right track to challenge $ 3.30.
The level of $ 3.30 is more than a simple round number. It aligns with a level of retracement of Fibonacci key and coincides with most of the liquidation cluster. If XRP crosses this brand, it could trigger a wave of liquidations which erases the path for a stronger break. Until then, the movements between $ 3 and $ 3.3 should be considered as part of a short potential pressure, not yet a complete rally.
A gathering could end up occurring if XRP manages to cross $ 3.45, a target of key fibonacci. At this price, all short positions according to the Bitget graph would be liquidated. Until then, the short-circuit story.
However, not maintaining above $ 3 and a ventilation of less than $ 2.72 would invalidate the bullish configuration, perhaps resulting in stronger losses.
When will the message when XRP then join? A graphic suggests that this could soon appeared first on Beincrypto.
