XRP Price Stagnation: Massive Selling Pressure Holds Back Rally
XRP’s recent price surge has faltered, encountering significant resistance just below a crucial volume-weighted average price (VWAP) level linked to its all-time high. This observation comes from independent trader Dom (@traderview2) in a recent X post. The 12-hour Binance chart reveals XRP/USDT trading around $2.4375, showing a session gain of 2.08%, yet failing to surpass what Dom identifies as the “ATH VWAP” – a long-term indicator derived from April 2021’s peak. This VWAP, depicted as a green band around $2.47, has capped daily price increases since mid-May.
Overwhelming Selling Pressure
Beneath the surface price action, a substantial selling pressure is evident. Dom notes a significant net outflow of 240 million XRP across various spot exchanges over the past week, based on proprietary order-flow data. A considerable portion (approximately 180 million XRP) was reportedly traded on Coinbase and Upbit, while Binance’s activity remained relatively stable.
The chart also highlights shorter-term VWAPs acting as immediate support levels: a one-month VWAP at $2.31 and a three-month VWAP at $2.28. Dom cautions that breaking these support levels could trigger a further price drop towards $2.20.
Bitcoin’s Influence and Correlation
The correlation between Bitcoin and XRP’s price movements hasn’t provided much support for XRP bulls. Each minor Bitcoin price increase has been countered by renewed selling pressure in XRP, making upward momentum exceptionally challenging in the current market.
Technical Outlook and Future Price Action
The technical outlook is clear: reclaiming the ATH VWAP could pave the way for a potential rise towards the late-March high above $3.00. However, if the price falls below $2.20, a further decline towards lower support levels around $2.00 is likely. Until a decisive breakthrough in either direction, XRP’s price remains trapped in a battle between consistent selling and diminishing buying pressure.
At the time of writing, XRP is trading at $2.36. The data presented was sourced from TradingView.com and visualized using DALL-E.