Ripple Price Forecast: XRP clings to $1.00 support level amid declining exchange balance
- 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) regains 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.)
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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