Ripple (XRP) Price Analysis: XRP traders deposit $85M on Binance as market sell-off cools

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On January 11th, the cost of XRP surpassed $2.40 once more, bouncing back after a rocky beginning to the week. Data from on-chain transactions indicates that XRP’s exchange reserves remain high as the market’s overall sentiment remains uncertain. What implications might this have for the potential recovery of Ripple prices in the near future?

XRP price bounces 7% as traders react to Ripple CEO’s Trump dinner update

This week, the value of XRP experienced fluctuation due to turbulent market conditions influenced by external negative factors. As crypto markets responded to these pressures, there was a significant drop in prices. However, towards the end of the week, Bitcoin recovered by 3%, regaining its position above $95,000, which in turn led to modest improvements for other altcoins as well.

On the other hand, it appears that the price of XRP is surging beyond the general market trend, possibly due to high-ranking Ripple officials attending a dinner with the newly elected U.S. President, Donald Trump.

On January 8th, it was confirmed that Brad Garlinghouse, CEO of Ripple, will be attending an exclusive dinner with former President Donald Trump. This gathering has ignited speculation about potential political backing for the broader cryptocurrency sector, especially given Ripple’s ongoing legal tussle with the U.S. Securities and Exchange Commission (SEC).

The reportedly high-profile dinner, attended by key players in finance and technology, sparked whispers about possible changes in regulations that might advantage Ripple and XRP.

Over the past 48 hours following the Ripple CEO’s post, XRP has experienced a notable surge of approximately 7%, propelling its price to $2.40 at today’s press time on January 11. This growth outpaces the more modest increases seen in Bitcoin (BTC) and Ethereum (ETH), which have gained only 5%.

The recent bullish market trends in XRP suggest its responsiveness to updates regarding regulations and global politics. Traders are keeping a close eye on whether this development might spark additional purchasing energy, given that Trump’s inauguration is scheduled for January 20th.

XRP Exchange Reserves Surge $85 million as market sentiment remains uncertain

The cost of XRP increased by 7% significantly, outperforming the overall market rebound, with some credit going to Ripple’s CEO, Brad Garlinghouse, who attended a dinner hosted by ex-President Donald Trump.

Although the price trend seems hopeful, the pattern of transactions on the XRP network suggests that traders are exercising caution and keeping a watchful eye for any market instability.

According to this perspective, the Exchange Reserves graph from CryptoQuant shows the current worth of XRP tokens stored in wallets on Binance, providing insights into the immediate thoughts of traders regarding the coin.

From January 5th to January 11th, it’s clear that traders added approximately 35 million XRP coins to their Binance accounts. Given the current market values, this injection increased the temporary market supply by around $85 million over the last seven days.

This rise in exchange reserves gives a somewhat cautious perspective on XRP for two key factors. Initially, the substantial boost in available supply implies that traders might be planning to offload, which could halt any prolonged price increase. Secondly, it highlights the market’s anxiety, as traders focus on maintaining liquidity due to ongoing regulatory concerns and volatile conditions in the broader cryptocurrency market.

As I delve into my ongoing analysis, the question that arises is whether XRP’s current surge can sustain itself against potential selling pressures. This hinges significantly on the broader market trends and any forthcoming regulatory decisions within the next few weeks.

XRP price forecast: Failure to breach $2.50 could trigger another pullback

Following a 7% increase over the past two days, the technical analysis of the XRP/USD daily chart suggests a relatively optimistic outlook for XRP prices, but it also warns of significant challenges that lie ahead.

The change in volume (Volume Delta) has switched to a positive value, suggesting 18.92 million XRP are flowing into the market, signifying renewed interest from buyers. This increase suggests that buyers might be regaining control, implying there could be further price increases if this buying pressure continues, potentially extending the upward trend.

Despite the Parabolic SAR indicator rising to $2.57 and pointing towards increasing bullish pressure on XRP, there’s an indication that bearish momentum could persist. If XRP fails to surpass the significant resistance level at $2.50, it might lead to a dip in prices, given the current cautious trading environment. Moreover, the increase in XRP coins held in exchange reserves hints at the possibility of short-term sell-offs should market volatility escalate.

To summarize, for XRP to maintain its upward trend, it needs to surpass $2.50. If it fails to do so, there’s a possibility it could drop back towards the $2.25 support level.

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2025-01-12 21:18