XRP whale activity explodes and sell signal appears

XRP’s recent price rise has led to a significant increase in whale activity for the asset. At this point, major indicators are showing sell signals for the sixth-largest digital currency.

XRP is up 14.2% in the last 24 hours and is trading at $0.69 at the time of this writing. The asset’s market capitalization currently stands at $37.8 billion, with a daily trading volume of $7.2 billion.

According to data provided by Santiment, the number of whale transactions consisting of at least $100,000 worth of XRP increased 205% in the last 24 hours, from 770 to 2,347 per day.

As whale activity increased, XRP’s Relative Strength Index (RSI) also rose to 72 from 62 in the past day, as per Santiment data. This indicator suggests that XRP is a bit overheated at this point and high price volatility is expected.

For XRP to remain strong, RSI needs to cool below the 60 line.

According to data from Santiment, the XRP price-daily active address (DAA) differential has fallen to minus 29% at the time of reporting. If the number of active addresses decreases while the asset price is rising, the Price DAA Divergence indicator will show a sell signal.

Meanwhile, XRP’s total open interest (OI) surged from $635 million to $845 million in the past 24 hours. Surprisingly, the XRP Binance funding rate also increased from 0.05% to 0.08% over the same period.

This means that despite overheated market conditions, the proportion of investors betting on further price rises has increased. When the price of XRP falls, traders may witness large amounts of long positions being liquidated.

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