- XRP rally has moved closer to Q3 supply zone.
- Will whales once again intensify their profit-taking in the area?
Ripple (XRP) saw an 11% gain last week, partly driven by Grayscale’s inclusion of an XRP Trust in its crypto product lineup.
However, the altcoin was on the verge of reaching a Q3 supply zone near $0.06. This zone has attracted intense profit-taking in the past, especially from whales. Will the trend repeat itself according to the XRP price prediction?
Will Supply Zone Reverse XRP Price Prediction?
Source: XRP/USDT, TradingView
XRP has shown a clear price trend in Q3. Notably, the strong rally in July and the partial victory against the SEC in August ended near the supply zone at $0.6. This made $0.6 a key price level to watch, especially during price appreciation.
At press time, this week’s rally was heading towards the supply zone. If the trend repeats and another price rejection occurs, XRP could slide towards the $0.54 support.
In such a scenario, shorting the asset would generate gains, especially if the overall market cools before the FOMC meeting.
However, given bullish expectations for Fed rate cuts, re-entering the market would only make sense if XRP flips the supply zone into support.
Meanwhile, the RSI showed more room for the current uptrend, while the Stochastic RSI displayed overbought conditions. This once again signaled that the supply zone should be pinned as a crucial watchlist.
Trade flows show sales decline, but…
Source: CryptoQuant
This week’s XRP rally was also marked by a reduction in selling pressure on centralized exchanges, as evidenced by a sharp drop in exchange inflows.
On Binance, XRP inflows have dropped from nearly 1.8 billion tokens on September 8 to around 50.9 million at the time of writing. This reduced supply pressure has contributed to this week’s bullish trend.
However, a price increase to $0.6 could attract a whale short sale if last month’s trend repeats. Whales triggered profit-taking in August when XRP reached the supply zone at $0.6, as illustrated by spikes in Whale-to-Exchange flow.
Source: CryptoQuant
Read XRP Price Prediction 2024-2025
If the trend repeats and whales opt for selling at this level again, XRP’s move above the supply zone could be derailed. In such a case, speculators may look for another entry into the market at the $0.54 or $0.50 support levels.
However, the bearish thesis could be invalidated if risk markets rally sharply after the FOMC meeting.
