Key Takeaways
Whale movement boosts bullish momentum, but distribution concerns arise. Mixed on-chain activity and overbought RSI could challenge XRP’s breakout above $3.66.
A massive 210.6 million Ripple [XRP] tokens, worth $738 million, has been transferred between unknown wallets, raising speculation around whale intentions.
This development has sparked debate among traders about whether it signals accumulation by large holders or a covert distribution setup.
While the transfer aligns with a broader bullish narrative, its anonymous nature introduces caution.
Combined with XRP’s ongoing price consolidation below key resistance, the move could either reinforce buying pressure or precede a potential cooldown.
Will XRP’s rally continue?
XRP recently rallied to $3.56, now hovering just below a key resistance zone near $3.66. The sharp move upward came after a breakout from the $2.17 level, lifting prices by more than 60%.
However, the Stochastic RSI is flashing overbought signals, sitting above the 88 level, hinting at exhausted bullish momentum.
Additionally, price has begun consolidating beneath resistance, suggesting indecision.
While moving averages still slope upwards, a failure to clear $3.66 convincingly could lead to short-term retracement.
Therefore, the next few daily closes will likely determine whether bulls maintain control or lose steam.
Source: TradingView
What’s the driving force behind XRP’s momentum?
The 90-day Spot Taker CVD remains firmly in “Taker Buy Dominant” territory, showing that buyers continue to hit market orders more aggressively than sellers.
This reflects rising trader confidence in continued upside, especially as the price surged in recent days.
Moreover, this buying pressure aligns with the derivatives data, reinforcing the idea that market participants are betting on further appreciation.
However, if buyers become over-leveraged or price stalls at resistance, this same conviction could flip into forced selling.
XRP’s derivatives market is heating up fast. Trading volume has soared 45.49% to $19.41B, while Open Interest climbed 4.44% to $11.15B.
Even more notably, Options Volume jumped 137.69%, and Options Open Interest rose 28.04%.
These figures suggest rising speculative participation and leveraged positioning. While this often supports bullish trends in the short term, it can also amplify downside risk in the event of liquidations.
Signs of a fading network
XRP’s on-chain metrics have dropped drastically, casting doubt on the sustainability of the recent rally. Transaction count has fallen to 221K, while network growth plunged to just 1,864 new addresses at press time.
This sharp decline in both activity and new user onboarding undermines confidence in long-term demand. While price remains elevated, the drop in fundamental usage suggests momentum may be losing support.
Therefore, unless these metrics rebound, XRP’s rally could soon face pressure from weakening network participation.
Undervaluation or hype?
XRP’s NVT ratio has dropped by 31.53% over the last 24 hours to 166.98, which is a sharp decline.
While a falling NVT can indicate undervaluation as transaction volume outpaces market cap, it may also point to inflated short-term activity.
The recent surge in transaction count could be driving this drop, but without corresponding growth in new users, it raises questions.
Therefore, traders should watch whether the decline reflects true network value or merely speculative noise, as this will influence XRP’s long-term trajectory.
XRP shows strong bullish momentum, supported by taker dominance and rising derivatives activity. However, resistance near $3.66, overbought RSI, and fading network growth inject caution.
Whether XRP continues its rally or faces rejection depends on sustained volume, breakout confirmation, and broader market support. For now, price remains at a key pivot.
