Ripple price rises as whales reduce exchange activity

Ripple's (CRYPTO:XRP) price has surged back to $0.60, marking a 7.74% gain in the last 24 hours and positioning it as the top performer among the top 10 cryptocurrencies.

This rally is part of a broader market recovery, raising questions about whether XRP can sustain this momentum through the week.

One key factor driving this uptrend is the significant reduction in whale transactions to exchanges.

According to data from CryptoQuant, whale-to-exchange transactions on the XRP Ledger have dropped tenfold since August 18.

This metric, which tracks large crypto movements between whales and exchanges like Binance, usually indicates whether whales are preparing to sell or hold their assets.

The current decrease in transactions suggests that whales are withdrawing XRP from exchanges, a bullish sign indicating that they are not planning to sell their tokens soon.

On August 18, there were around 664 such transactions, but this number has since plummeted to just 60.

This lack of selling pressure appears to have played a crucial role in XRP's recent price rebound.

While transactions on centralized exchanges (CEXes) have declined, the volume of transactions on decentralized exchanges (DEXes) has jumped by 28% in the last 24 hours, suggesting an increase in on-chain demand for XRP.

The high volume concentration on the XRP Ledger is another positive indicator, as it reflects increased liquidity in the market.

If this trend continues, it is likely that XRP's price will remain above $0.60, with the potential to climb even higher.

Technical analysis also supports this bullish outlook.

The Parabolic Stop And Reverse (SAR) indicator, which is useful for detecting trends and reversals, currently shows its dotted lines below the price of XRP, signaling that the uptrend may continue.

Additionally, XRP is trading above its 20-day and 50-day Exponential Moving Averages (EMAs), further confirming the bullish trend.

If the rally continues, XRP could target $0.65.

However, if demand weakens or whales start moving their assets back to exchanges, the price could drop to $0.59 or even $0.55 in a more bearish scenario.

At the time of writing, XRP is priced at $0.599.