XRP prices didn’t have the brightest start until September. The token has slipped over 3% in the last 24 hours, trading nearly $2.73 at press time. This latest DIP adds 7-day loss to 8.6%.
Early weaknesses have made traders cautious, but a closer look at on-chain and derivatives data shows why they believe that rebounds are ongoing.
As the emotion of the derivative improves, the whales flow coldly
The whale exchange flow fell to 1,025 XRP on August 31st. This is one of the lowest levels in a month. By September 1st, the flow had recovered slightly to 1,768 XRP, maintaining the pressure near the low.
This suggests that large holders have not yet sent XRPs in exchanges (since August 26th), which eases sales pressure.
While some may read that whales are losing interest, derivative data provides a more nuanced view. Taker’s buying and selling ratio, which measures aggressive purchases to sales in futures, has a history of marking the bottom of the local area.
On August 2nd, the ratio reached 0.88, with XRP rising from $2.76 to $3.07, earning 11%. On August 5th, the ratio fell to 0.90, followed by a 12% rally. On August 19th, another low of 0.90 preceded the rally, nearly 8%.
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Latest Low It was 0.90 on August 29th. XRP prices have not yet risen, but the ratio has risen to 0.96, indicating a more positive sentiment.
This rising bullishness further supports the XRP price recovery narrative, along with fewer whale sales instances.
Watch bullish divergence and important XRP price levels
The second bull sign comes from the Money Flow Index (MFI). This indicator tracks both the price and the volume of traded to indicate whether money is flowing into the asset.
The XRP prices fell until late August, but the MFI steadily rose from 31.24 on August 22 to 47.49 on September 1.
XRP Price Chart also backs up this view. $2.70 remains an important level of support. The daily closure below that opens the path of slides towards $2.43 and can override the rebound hypothesis.
However, as long as XRP exceeds support, the Bulls have an opportunity to change momentum. As the sentiment from derivatives and influx continues to solidify, the next resistance to testing is $2.96. This move marks a rebound of about 8% from the current level. This shows the rise in the minimum XRP price seen over the past month after Taker’s buy/sell ratio hits local bottom.
Disclaimer
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