XRP saw a healthy rally from mid-September as market sentiment turned bullish. Its rise led to a retest of resistance in May 2022. But, sadly, the whales have started to cause short-term selling pressure.
XRP whales have had a huge impact on its performance to date. For example, the largest whale holding more than 10 million coins had a net gain between September 15th and 19th.
This whale class controls over 70% of the total XRP supply. Whales in the same category have reduced their balances over the past two days.
XRP whales holding between 100,000 and 1 million coins have similarly created selling pressure over the past two days. However, addresses holding 1 to 10 million coins have been on a buying spree. Therefore, the potential downside is limited.
A strong sentiment shift and favorable network growth contributed to XRP’s bullish mid-month performance. The aggregate-weighted sentiment indicator turned around on September 16, surging from negative to positive.
Similar network growth pivots may have contributed to the bullish outcome. Despite the opposite price action results, these indicators have not changed in the last 24 hours of the news.
After exhibiting higher relative strength, XRP managed to gain 29% from its mid-month level.
Having said that, it’s important to note that XRP’s price action has pulled back slightly over the past 24 hours, confirming significant selling pressure.
This is consistent with the aforementioned whale exodus. The uptick came after XRP retested long-term support.
Well, the current selling pressure on XRP suggests that it could be in for a sharp pullback. However, the mainstream supply on September 21 was low, possibly because buying pressure from some whales created more friction for the bears.
Interestingly, the Fed raised its benchmark interest rate by another three-quarters of a percentage point on September 21. Since then, XRP has lost 0.50% on September 22.
A bearish outcome could trigger a deeper retracement. Investors should consider that XRP’s price action is heading towards a support and resistance squeeze zone. So, despite recent failed attempts, a potential breakout could be nearing its end.