- XRP saw larger aggressive sell orders paired with a higher number of aggressive buy orders, signaling activity.
- Volatility an 18-day low, but flipping the $3.20 zone is key for a bullish breakout as $2.90 remains as support.
Since December, Ripple [XRP] has seen a distinct pattern in trading behavior, marked by larger aggressive sell orders alongside a higher number of aggressive buy orders.
The significant size of these sell orders likely indicated whale activity, suggesting that major holders could be reducing their positions due to the profitability from a $0.300 price level.
In contrast, the increased count of buy orders suggested that retail investors were stepping in to purchase the U.S.-based crypto.
This dynamic could lead to heightened volatility in XRP’s price as large sell orders could push prices down, while simultaneous buying by retail investors might provide some upward pressure.
Source: Hyblock Capital
Over time, if whales continue to sell and retail interest remains strong, XRP could see a more distributed holding pattern, potentially stabilizing the price.
However, the continued dominance of whale transactions can lead to significant price swings, impacting short-term market sentiment and possibly deterring new retail investment due to increased risk.
XRP price action and prediction
Analysis of the XRP/USD pair showed a pattern of constrained volatility, which culminated in an 18-day low.
This compression was indicative of potential impending volatility, mirrored by recent moves in Bitcoin that suggested momentum could be building.
The critical resistance was $3.20 aligning with the ATH Volume Weighted Average Price (VWAP) and the weekly relative VWAP.
A decisive close above this level could trigger a bullish outbreak, potentially driving prices to explore higher resistances.
Conversely, if XRP fails to surpass the $3.20 threshold, it could reinforce the $2.90 area as a support zone.
The level has consistently underpinned the asset during recent retracements, acting as a springboard for rebounds.
Source: TradingView
However, sustained pressure below this support could initiate a downturn, leading to a test of lower supports at $2.60, marked by earlier consolidations and the 1-month VWAP.
The coiling price action and intersection of VWAP at $3.20 suggested a pivotal moment for XRP. Flipping this resistance could affirm the bullish sentiment, potentially setting the stage for a test of previous highs.
However, inability to breach this level could see XRP retreating to test foundational supports, thereby dictating the near-term market trajectory.
U.S.-based cryptos to benefit?
In other news, Eric Trump confirmed that U.S.-based crypto projects will benefit from zero capital gains tax, while non-U.S. projects will face a 30% tax rate.
The policy aimed to incentivize investment in domestic crypto ventures.
For U.S. investors, this tax exemption could make XRP a more attractive asset, potentially leading to increased demand and a rise in its market value.
Read XRP’s Price Prediction 2025–2026
However, it’s essential to consider that the broader cryptocurrency market is influenced by various factors, including regulatory changes, market sentiment, and technological developments.
Therefore, while the tax policy may provide a favorable environment for XRP, investors should remain cautious and conduct thorough research before making investment decisions.
