Ripple (XRP) has seen an uptick in whale accumulation in the past three months. On-chain data show that the count of XRP whales holding more than 1,000,000 tokens has increased over the past 90 days.
However, this has failed to move the needle, as the token’s key technical indicators hint at the possibility of a short-term price decline.
Ripple Whales Accumulate For One Reason
The number of whale addresses holding above 1,000,000 XRP tokens has increased by 2% in the past three months. As of this writing, this cohort of XRP holders consists of 2010 addresses. In fact, on May 19, the number totaled 2027, representing a year-to-date high.
This category of XRP holders may have filled their bags due to the profitable transactions involving the altcoin in the past few weeks. An assessment of XRP’s daily ratio of transaction volume in profit to loss returned a value of 1.14.
Read More: Everything You Need To Know About Ripple vs SEC
This means that for every XRP transaction conducted during the period under review that has returned a loss, 1.14 ended in a profit. This suggests that there have been more profitable transactions than the ones in which holders have incurred losses.
XRP Price Prediction: The Bears Attempt to Prevent a Price Rally
Despite the surge in whale activity and the recent profitability of XRP transactions, bearish sentiments remain significant among traders. This was gleaned from its Elder-Ray Index, which has ended weekly with a negative value since April 8.
This indicator measures buying and selling pressure in the market. When its value is negative, it indicates that bear power is stronger than bull power. It suggests that sellers drive the price down more than buyers push it up.
XRP’s Moving Average Convergence/Divergence (MACD) indicator confirmed this downtrend. Its MACD line (blue) has crossed below the signal (orange) and zero lines.
This crossover is a bearish signal. It typically signals that an asset’s short-term trend is moving downwards and pulling away from its longer-term trend. It suggests a decline in the accumulation pressure, and traders interpret it as a sign to exit the market or not make long trades.
As of this writing, XRP’s MACD line trends downward, signaling a spike in token sell-offs. If this trend continues, the token’s value may slip under $0.5 to trade at $0.41.
Read More: Ripple (XRP) Price Prediction 2024/2025/2030
However, if this projection is validated by a surge in demand for the altcoin and less profit-taking activity, XRP might exchange hands at $0.55.
Disclaimer
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