- Ripple's rejection from $0.65 is yet to find formidable support.
- Jed McCaleb continues to sell his XRP holdings, adding to the overhead pressure.
- XRP will resume the uptrend if the 50 SMA and the ascending channel's lower edge support hold firmly.
Ripple has sustained a consistent uptrend for over two weeks. It had become apparent that the cross-border cryptocurrency will quickly rise above the yearly high at $0.75. However, a correction came into the picture at $0.65, leading to the ongoing declines.
Ripple's co-founder Jed McCaleb sells millions of coins
The co-founder of XRP and former Ripple executive Jed McCaleb is reported to have recently sold at least 38 million coins, worth roughly $22 million. Over the last few weeks, McCaleb's wallet, referred to as 'Tacostand,' has made several sales. According to Leonidas Hadjiloizou, an analyst following the wallet's activities, the most recent sale was the largest.
The analyst believes that if the sales continue at the same 38 million per day, McCaleb will run out of his holdings by May. Hadjiloizou wrote on Twitter:
Jed will be selling 38,345,406.53 XRP per day this week. This amounts to roughly 268 million XRP or $166M at current prices in 1 week. At this rate, his 2.896 billion XRP would run out by May. At half that rate (19M per day), he would run out by mid-July. At 10M per day by the end of the year.
Ripple eyes breakdown below ascending channel
XRP is exchanging hands at $0.56 while holding in the lower band of the ascending parallel channel. Closing the day below the middle boundary added weight to the breakdown. Moreover, if the lower edge gives in to the selling pressure, overhead pressure will mount, pushing Ripple downhill.
The Moving Average Convergence Divergence (MACD) continues to validate the correction as it nears the midline. The MACD line (blue) increases the deviation from the signal line, which shows that bears have control over the price.
XRP/USD 4-hour chart
Looking at the other side of the picture
If XRP holds above the ascending channel's lower boundary support, declines to $0.4 will be averted. Notably, the 50 Simple Moving Average (SMA) is in line to provide support, perhaps strong enough to stop the ongoing breakdown. XRP bulls must focus on stepping above $0.6 to get the price out of the woods and focus on higher price levels.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.