Main to remember
Usually, overvoltage in exchange reserves is a worrying result for holders of this asset. However, in this case, the days of destroyed currency and the whale transaction measures revealed that XRP investors do not need to anticipate the low -term lowering.
On September 1, XRP reserves on exchanges suddenly and simultaneously climbed several exchanges. Binance experienced a 610 million tokens hike, while Bithumb recorded an increase of 872 million XRP.
For its part, the reserves of Bybt almost doubled from 188 million to 380 million, and the reserves of Okex reached 233 million XRP.
Source: cryptocurrency
Generally, an increase in exchange reserves is a sign that the market is positioned to sell. However, it was not the typical token movement that precedes quick price reductions, as evidenced by the whale to exchange transactions and the days of destroyed money. On September 1, XRP lost 0.61% of its value, but has always experienced increased volatility.
What should XRP merchants and investors expect?
No sign of panic of XRP holders despite the overvoltage of reserves
Source: cryptocurrency
The spotlight CVD measures the cumulative difference between the purchase of the market and market sales volumes over 3 months. Since July 31, the metric has reflected a dominant phase of sale of takers.
The prevalence of sales pressure in the past two months is a worrying fact for investors. In recent weeks, XRP has exchanged in a descending triangle model. However, he noted an upward escape on Sunday 07 September.
Source: XRP / USDT on tradingView
And yet, as the graph of a day pointed out, the market structure was down despite the break after the triangle model. The OBB has not yet made a notable summit, although it has slowly moved higher in September.
The MacD has also seen a bullish crossing under the zero line – a sign that the lowering momentum can weaken in recent days. Overall, it seemed likely that XRP would continue to go to the south unless the purchase pressure is increasing considerably. This would be reflected in the OBV.
Source: cryptocurrency
The whale to exchange transactions on Binance barely agitated on September 01, even if the exchange reserves increased by 610 million XRP. If the hike in the reserves came from the whales, the metric above would have reflected it during the day.
Source: Glassnode
Likewise, the days of destroyed currency were also relatively flat.
Consequently, it seemed likely that the exchange reserves jumped, not following the sale of panicked investors, but exchanges buying more XRP. In fact, this could be a sign of institutional coordination for an upcoming event.
