Ripple’s XRP is down 2% in the last 24 hours, making it the worst performer in the top 10 cryptocurrencies.
The bearish performance has seen XRP drop below $1.40 despite strong fundamental news from the Ripple ecosystem.
XRP underperforms as whales refrain from selling
XRP has lost 2% of its value in the last 24 hours and has now dropped to the 5th position on the CoinMarketCap list.
It has lost its position to Binance’s BNB coin once again after poor performance in recent days.
The bearish performance comes despite Ripple announcing plans to acquire BC Payments to secure a financial services license in Australia.
The license would allow the company to offer Ripple Payments, an end-to-end payments platform that manages the “full lifecycle” of a transaction and integrates both traditional banking and crypto services in Australia.
Furthermore, whales continue to hold XRP despite the market volatility.
On-chain data shows that addresses holding between 10 million and 100 million XRP appear unbothered by price volatility, macroeconomic uncertainty, and geopolitical tensions.
The Supply Distribution metric shows that this group of whales holds 16.59% of XRP’s total supply.
The whales have been holding their tokens after aggressively accumulating the remittance XRP from August to December.
If the whales add to their holdings, it would boost investors’ confidence in XRP and potentially result in a rally.
Meanwhile, retail interest in XRP is also on the rise despite the price decline.
XRP’s futures Open Interest (OI) now reads $2.39 billion, up from the $2.32 billion recorded on Tuesday.
Technical outlook: XRP may retest the $1.48 resistance level again
The XRP/USD 4-hour chart is bearish and efficient, but the increased interest from whales and retail traders could push the price higher in the near term.
The momentum indicators remain mildly bullish despite the price volatility.
The Moving Average Convergence Divergence (MACD) indicator remains above the signal line on the 4-hour chart while the green histogram bars expand, prompting investors to increase their risk exposure.
The Relative Strength Index (RSI) at 52 on the same chart is rising, showing easing bearish momentum.
If the RSI stays above 50, it would reinforce the bullish outlook, increasing the odds of a steady rebound.
Currently, XRP is trading below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), all of which hover between roughly $1.53 and $1.99.
If the bulls regain control and push XRP past the $1.48 resistance level, the coin would likely retest the 50-day EMA at $1.58 afterwards.
An extended rally would allow XRP to hit the 100-day EMA at $1.74.
However, if the pullback goes deeper and the $1.36 support level fails, XRP will retest the weekly low price of $1.34.
A breakdown below this would pave the way toward deeper downside extension.
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