XRP Price Forecast: XRP holds fragile support as Binance liquidity declines
- XRP reclaims support at $1.00 but appears to be lacking momentum to accelerate the rebound.
- Binance exchange balance narrows slightly to 2.62 billion XRP, signaling declining liquidity.
- XRP’s short-term rallies are likely to face selling pressure unless bulls can decisively reclaim the 50-day EMA at $1.07 as support.
Ripple (XRP) holds key support at $1.00 on Wednesday, following the headwinds experienced the day before. Near-term support around $0.99 encouraged investors to reengage, supported by the return of inflows into spot Exchange-Traded Funds (ETFs).
A steady recovery above this level is required to reclaim a key descending trendline break area around $1.06 and the 50-day Exponential Moving Average (EMA) as support to reinforce the bullish grip.
XRP exchange balances fall as whale accumulation continues
XRP exchange balance on Binance has declined to 2.62 billion XRP as of Tuesday, down from 2.63 billion XRP the previous day. According to CryptoQuant, lower exchange reserves imply less immediate sell-side supply. If sustained, reduced liquidity is a positive factor, raising the odds of short to medium-term price increases.
Large-volume investors in the cohort holding between 10 million and 100 million XRP increased their exposure to 18% of the total circulating supply as of Tuesday, up from roughly 17% on August 12. If whale accumulation continues, it could offset broader selling pressure and boost the recovery outlook.
Technical analysis: XRP ticks up amid a broader bearish trend
XRP trades above $1.00, extending its slide beneath the key EMAs and preserving a bearish near-term bias. The 50-day EMA at $1.07, the 100-day EMA at $1.15 and the 200-day EMA at $1.34 all sit overhead, suggesting the broader trend remains capped despite the earlier break above the downward resistance trendline, whose break price is now seen near $1.06.
Momentum stays heavy, with the Relative Strength Index (RSI) hovering around 38 and the Moving Average Convergence Divergence (MACD) below zero, hinting at persistent downside pressure rather than an immediate bullish reversal.
Initial resistance appears at the descending trendline break zone around $1.06, followed by the 50-day EMA at $1.07, which marks the first dynamic barrier limiting any recovery attempts. Above these, the 100-day EMA at $1.15 and the 200-day EMA at $1.34 define a broader supply area that would need to be reclaimed to soften the prevailing bearish structure. Any fresh decline would leave the pair probing for a new floor below $1.00. On the other hand, holding above that support level would keep traders focused on whether XRP can regain the $1.06 hurdle to ease immediate downside risk.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
