XRP’s recent surge in price has coincided with a notable increase in whale activity within the asset’s market. However, recent data suggests a potential sell signal for the sixth-largest cryptocurrency.
In the past 24 hours, XRP has experienced a significant uptick of 14.2%, reaching a trading price of $0.69. With a market capitalization of $37.8 billion and a daily trading volume of $7.2 billion, XRP has garnered attention from investors and traders alike.
According to Santiment, the number of whale transactions involving at least $100,000 worth of XRP has surged by 205% over the same period, indicating heightened activity among large investors.
Additionally, XRP’s Relative Strength Index (RSI) has risen from 62 to 72, signaling a potential overheating of the market. A cooling down of the RSI below the 60 mark would be necessary for XRP to maintain its bullish momentum.
Santiment’s data also reveals a negative 29% divergence between XRP’s price and daily active addresses, suggesting a sell signal as the number of active addresses decreases while the price rises.
Despite these indicators, XRP’s total open interest has increased from $635 million to $845 million within 24 hours. This surge in open interest, coupled with a rise in the XRP Binance funding rate from 0.05% to 0.08%, indicates growing investor optimism for further price appreciation.
However, the market’s overheated conditions raise concerns about the potential liquidation of long positions if XRP’s price experiences a significant decline.