XRP: Korean Buying Pressure Hints at Potential Upside
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XRP Shows Bullish Signs Amidst Market Dip
XRP experienced a sharp decline, falling 4.3% between August 28th and 29th, mirroring broader market weakness. However, on-chain data reveals significant accumulation by Korean exchanges, hinting at underlying bullish sentiment.
Korean Buying Absorbs Sell-Off
- Korean exchanges absorbed 16 million XRP (≈$45.5 million) during the price drop.
- This suggests strong regional institutional demand even as retail wallets reduced their holdings.
- South Korea's crypto market often drives speculative trading, a phenomenon known as the "Kimchi Premium."
- Accumulation by large Korean wallets indicates a potential price floor for XRP.
Accumulation vs. Distribution
While some whales moved $200 million in DOGE to Binance (a potential distribution signal), Korean entities were increasing their XRP holdings. This divergence suggests contrasting market strategies.
XRP Ledger Activity Increases
- Active addresses on the XRP Ledger climbed 20% in three days leading up to the September 12th Decentralized Media launch.
- Chinese fintech firm Linklogis integrated its supply-chain financing platform (worth over $1 Trillion) with the XRP Ledger, bolstering Linklogis' equity by 23%.
XRP Price Action Summary
- XRP fell from $3.02 to $2.89, a 4.30% decline.
- Heavy selling on August 28th drove prices down to $2.77 with significantly higher volume.
- Buying support emerged around $2.85–$2.86.
- A late-hour bounce saw XRP recover from $2.87 to $2.89.
Technical Analysis
- Support: Key support lies at $2.77, reinforced by high volume; $2.85–$2.86 is acting as an accumulation zone.
- Resistance: $2.91 is the short-term cap; $3.02 remains the dominant resistance level.
- Momentum: RSI recovered from oversold territory, indicating positive momentum.
- MACD: Histogram suggests a potential bullish crossover.
- Patterns: Symmetrical triangles and double-bottom setups align with a cup-and-handle formation, with some analysts projecting targets between $5 and $13.
Traders Are Watching
- Whether $2.85–$2.86 support holds against further selling pressure.
- A confirmed break above $3.02–$3.04 resistance.
- Downside risks if $2.77 fails, with $2.70 as the next support level.
- Institutional accumulation on Korean exchanges as a key driver for sustaining momentum.