October 1, 2022

XRP has managed to deliver healthy gains since mid-September as sentiment has shifted in favor of the bulls. Its rally resulted in a retest of resistance in May 2022. But unfortunately, whales have started to add to the short-term selling pressure.

XRP whales have had a huge impact on its performance so far. For example, the largest whales that have more than 10 million coins had a net increase from September 15th to September 19th.

This category of whales controls more than 70% of the total supply of XRP. Whales in the same category have reduced their balance in the last two days.

Source: Sentiment

XRP whales holding between 100,000 and 1 million coins have similarly added to the selling pressure over the past two days. However, addresses that have between one and 10 million coins are on the rise. So limiting the potential downside.

A strong sentiment shift and favorable network growth aided XRP’s bullish mid-month performance. The overall weighted sentiment metric turned around on September 16, jumping from negative to positive.

Source: Sentiment

A similar reversal in the network’s growth could have contributed to the bullish outcome. These metrics have not changed over the last 24 hours at press time despite price action to the contrary.

XRP managed to rally as much as 29% from mid-month levels after showing more relative strength.

There have been attempts

With this in mind, it is important to note that XRP’s price has registered a slight decline in the last 24 hours, confirming significant selling pressure.

This was consistent with the whale outflows mentioned above. The move up came after XRP retested a long-term support level.

Source: TradingView

Well, the current XRP selling pressure suggests that it could be headed for a significant pullback. However, the prevailing supply on September 21 was low, possibly because buying pressure from some whales created more friction for the bears.

Interestingly, on September 21, the Federal Reserve raised benchmark interest rates by another three-quarters of a percentage point. After that, XRP fell by 0.50% on September 22nd.

A bearish outcome is likely to trigger a deeper pullback. Investors should note that the price of XRP is headed towards a pressure and resistance zone. Therefore, a potential breakout could be approaching despite the recent failed attempt.

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