XRP Selling Pressure Eases, But Institutional Demand Still Missing: Is Recovery Near?

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<a href="https://minority-mindset.com/xrp-usd/">XRP</a> Selling Pressure Is Easing, But Something Is Still Missing

Key Takeaways

  • Bybit deposit wave ended around May 16.
  • Institutional accumulation indicator at -0.0059, near neutral but still negative.
  • Both readings cover the same period and point in opposite directions.
  • SMA50 at $1.3762, only $0.0055 above current price: nearest 1H resistance.
  • RSI at 52.84, signal at 38.4.

What Taha’s flow data shows and what Arab Chain’s accumulation model shows

Recent analysis of transaction data from CryptoQuant shows a shift in activity on several cryptocurrency exchanges. Around May 16th, Bybit saw its inflow and outflow of funds balance out, ending a month-long period where deposits were consistently higher. At the same time, both Binance and Coinbase experienced more withdrawals than deposits. However, analyst Taha notes this data tracks the *difference* between deposits and withdrawals, not the overall amount of XRP being moved, so it doesn’t reveal the precise volume of tokens changing hands.

According to analysis by Arab Chain, the Binance XRP Institutional Accumulation Model is currently around -0.0059, indicating a shift back into negative territory. This follows a period in April where the indicator was positive and XRP’s price increased, reaching $1.45. While the index is still near neutral and doesn’t suggest significant selling pressure, it is moving away from the positive accumulation patterns observed in late March and April.

Just because there isn’t much selling doesn’t mean people are actively buying. Taha’s data shows a decrease in selling, but Arab Chain’s data reveals institutions aren’t currently increasing their holdings. A market with less selling but no real buying isn’t necessarily stable; it’s simply waiting for something to spark a new trend, and hasn’t yet established a solid base.

Why the SMA50 is the only resistance that matters right now

On the 1-hour chart, the 50-period Simple Moving Average (SMA50), currently at $0.0055 above the current price, is the closest resistance level. The price needs to break above this to signal a potential shift from a short-term recovery to an upward trend. However, because the SMA50 is falling, it’s becoming an easier target to reach as time passes. Further resistance can be found at the 100-period SMA ($1.3948, $0.0241 above the current price) and the 200-period SMA ($1.4230, $0.0523 above). All three of these moving averages are trending downwards, and the current price remains below them.

Looking at the 1-hour chart, the price fell quickly on May 18th, from around $1.41 to about $1.345. It has since recovered, and is now approaching $1.37. The 50-day Simple Moving Average is the first potential resistance level it will encounter.

What the RSI adds and what it does not settle

The Relative Strength Index (RSI) recently showed a promising sign of increasing momentum, reaching 52.84 and moving significantly above its signal line – the strongest indication of a potential upward trend since the price decline in May. However, this positive momentum is occurring while the price remains below its major moving averages, suggesting a recovery is *starting*, not yet fully established. Currently, the signal line is considerably lower than the RSI, and historically, this gap tends to close as the signal line rises to meet recent price changes, rather than the RSI falling back. How quickly this happens will depend on whether this initial recovery can be sustained.

If XRP’s price stays above $1.3762 on the hourly chart for the next four hours, and a key indicator shows institutions are starting to buy again, then both the price pattern and on-chain data will point to a potential price increase. However, if the $1.3762 level acts as a ceiling and the institutional buying indicator stays negative throughout the week, then a recent improvement in trading volume was likely just a temporary break in the selling, not a sign of new institutional investment.

This article is just for informational purposes and shouldn’t be taken as financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Before you make any investment choices, be sure to do your own research and talk to a qualified financial advisor.

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2026-05-20 10:57