- XRP’s rally has brought it closer to the Q3 supply zone.
- Will whales again step up profit taking in this zone?
Ripple [XRP] It recorded an 11% increase last week, driven in part by Grayscale adding XRP Trust to its line of cryptocurrency products.
However, the altcoin was on the verge of reaching the Q3 supply zone around $0.06, a zone that has in the past triggered heavy profit-taking, especially from whales. Will this trend be repeated according to XRP price predictions?
Will the supply zone upend XRP price predictions?
XRP/USDT. Source: TradingView
XRP showed clear price trends in Q3, notably a strong recovery in July and a partial victory over the SEC in August, which ended near the supply zone at $0.6, making $0.6 a key price level to watch, especially when the price is rising.
At the time of writing, this week's rally is heading towards the supply zone. If this trend repeats and the price is rejected again, XRP could fall to the $0.54 support.
In such a scenario, shorting assets could be profitable, especially if the broader market cools off ahead of the FOMC meeting.
However, given bullish expectations for a Fed rate cut, a re-entry into the market would only make sense if XRP turns the supply zone into support.
Meanwhile, the RSI is signaling further room for the current uptrend to continue and the Stochastic RSI is hinting at overbought conditions, which further suggests that the supply zone needs to be pinned down as a key watchlist.
Currency flows indicate selling has eased, but…
Source: CryptoQuant
XRP's rebound this week was also marked by reduced selling pressure on centralized exchanges, as evidenced by a sharp decline in exchange inflows.
On Binance, XRP inflows have fallen from around 1.8 billion tokens on September 8 to around 50.9 million tokens at the time of writing. This reduction in supply pressure has helped fuel the uptrend this week.
However, if the price rises to $0.6, whales may gather. Sold Out If the trend of last month repeats itself, whales triggered profit taking when XRP hit the $0.6 supply zone in August, as evidenced by a surge in whale flows to exchanges.
Source: CryptoQuant
Read XRP Price Prediction 2024-2025
If this trend repeats and whales choose to sell at this level again, XRP’s move above the supply zone may be hindered. In such a case, speculators may look to re-enter the market at the $0.54 or $0.50 support levels.
However, a strong rally in risk markets following the FOMC meeting could invalidate the bearish thesis.
