Ripple (XRP) Price Forecast: Volatility Ahead as XRP Deposits on Binance Hit $1.6 Billion

Ripple (XRP) Price Analysis:

XRP price dipped below the $0.52 support level on Friday, Oct 25, down 7% within the weekly timeframe. On-chain movements observed in the last 14-days suggest the Ripple-backed coin could experience further downward pressure in the days ahead.

Can XRP bulls avoid a breakdown below the vital $0.50 support level?

XRP Price Tumbles 7% as Ripple vs. SEC Appeals Battle Heats Up

After a fairly positive start to the month, XRP price has decoupled from the broader crypto market uptrend this week.

Uncertainty surrounding the ongoing appeals battle between Ripple Labs and the US Securities and Exchange Commission has seen XRP lose traction in recent weeks, while rival Layer-1 crypto assets like BTC, ETH, and SOL all advanced to new multi-month peaks.

Emphasizing the bearish price action, the XRPUSD chart above shows how prices dipped by another 7% this week, from $0.56 on Monday, Oct 21, to hit the $0.52 level at the time of writing on Friday, Oct 25.

XRP Deposits on Binance Hit $1.6B as Traders Seek Exit Opportunities

With the Ripple vs SEC appeals battle still far from a definitive conclusion, XRP bull traders have grown wary of entering large volumes of long positions within the current market dynamics.

After a week on the back foot, crucial market data trends show that bears have capitalized on this uncertainty to seize control of the short-term market momentum.

CryptoQuant’s chart below tracks the flow of XRP deposits into Binance-hosted crypto wallets. As the largest retail trading platform in the world, Binance deposit flows provide insights into the dominant sentiment among retail traders.

 

Looking at the chart above, Binance traders held a total of 3.034 billion XRP on the exchange as of Oct 13. But as prices began to dip when the SEC filed a last-minute appeal in mid-October, Binance traders started to make larger XRP deposits into their trading wallets.

CryptoQuant’s latest data shows the deposits have now crossed 3.113 billion XRP, valued at $1.6 billion at the time of publication on Oct 25, its highest since the start of the month. Moreover, this also reflects that traders have deposited 79 million XRP (~$40 million) into Binance wallets within the last 14 days.

Typically, investors transferring assets to exchanges signals an intent to sell. Hence, the increase in exchange deposits signals increased selling pressure and a potential for downward price movement.

Considering that XRP is lagging behind broader market trends, this $40 million exchange inflow suggests that traders are increasingly offloading their holdings, likely to ape into better-performing assets.

XRP Price Forecast: $0.50 Breakdown Risk Heightens

XRP price has declined 7% within the weekly timeframe, trading around the $0.52 level at the time of writing on Oct 25. However, XRP deposits on Binance trending at a monthly timeframe peaks above $1.6 billion suggests more downward volatility ahead.

Technical indicators also affirm that XRP price could be on the verge of a breakdown below $0.50 in the coming days.

First, the Parabolic SAR indicator validates this bearish outlook, as the dots have positioned above the current XRP price, a typical signal that sellers are still in control. If XRP loses the $0.50 support as predicted, the next potential bearish target could be $0.48.

On the upside, XRP faces immediate resistance at $0.5486, aligning with the Chande Kroll Stop’s moving average line. A breach of this resistance could provide bulls with momentum toward the next major resistance at $0.57.

However, with the uncertainty around the Ripple vs SEC appeals, and on-chain data indicating increased selling pressure, the $0.50 support level remains the critical area to watch.