Ripple's XRP temporarily fell after South Korea declared martial law. XRP whales have weathered over $4 billion in realized gains over the past three days. If XRP recovers above the $2.58 level, it could make a new all-time high.
Ripple’s XRP fell 5% on Tuesday after news that South Korea declared martial law led to increased selling activity among investors and significant profit-taking. However, whales are increasing buying pressure as remittance-based tokens look to recover.
Korean exchange suspension of trading temporarily affects XRP rise
After an impressive rally last week, XRP briefly fell 7% on Tuesday following news that South Korean President Yoon declared martial law. This news sparked panic selling among investors, and prices on the Korea Exchange diverged from the general spot market.
XRP was one of the most affected of the top cryptocurrencies, with South Korean crypto exchanges Upbit and Bithumb, which hold the largest XRP reserves among centralized exchanges, suspending trading before At one point, it fell to $1.89. This decrease is due to the concentration of XRP holders in this region.
However, remittance-based tokens are starting to recover, with 24-hour trading volume increasing to $44.5 billion, according to Coinmarketcap data. This is only second to USDT and Bitcoin in the entire crypto market. Volume is likely dominated by buying activity as XRP price has recently recovered from the lows of $2.40 seen in the spot market earlier in the day.
While profit-taking has been rampant, with XRP investors realizing over $4 billion in profits over the past three days, whales have weathered the selling activity and steadily increased their holdings over the same period.
XRP network realized profit and loss, XRP supply distribution (1 million to 10 million coins) | Santiment
Austin Reed, head of revenue and operations at crypto brokerage Falcon “Between the first half and the second half of the fourth quarter, FalconX trading volume increased 10x. This is not just a retail move; institutional investors are driving the momentum.”Lead he writes.
This is also evident in whale-to-exchange flows, which measure whale activity, reaching significant levels not seen since the launch of XRP.
Flow from XRP Whale to exchange | CryptoQuant
Meanwhile, Ripple investment products recorded net inflows of $95 million, the highest weekly inflow ever, according to CoinShares' weekly digital asset report. This comes amid growing expectations that the SEC may approve the application for an XRP exchange-traded fund (ETF) in the US.
If XRP recovers above $2.58, it could make a new all-time high.
XRP is testing the $2.58 level of the major rectangle channel after causing over $86 million in total liquidations in the past 24 hours. This is more expensive than Bitcoin, according to data from Coinglass. The long and short positions liquidated were $41.74 million and $44.91 million.
XRP/USDT daily chart
The remittance-based token needs to recover the key level of $2.58 before extending its rally towards the top of the rectangular channel at $3.57 for a new all-time high.
The Relative Strength Index (RSI) remains at overheated levels in overbought territory, indicating that a price correction is imminent.
The bullish theory will be invalidated if the daily candlestick falls below $1.96.
