Ripple (XRP) has consistently traded above $0.49 in the past two weeks. A deeper dive into the on-chain data shows that the XRP ledger network could experience more price gains in the coming weeks.
Following media reports of a potential victory in its ongoing Securities and Exchange Commission (SEC) lawsuit, XRP’s price surged 24% on March 20. The rally continued until March 29, reaching a 10-month peak of $0.54.
However, crypto investors raised bearish concerns after a 10% correction that saw XRP fall below $0.50 on April 3. On-chain data reveals how resurgent whales have helped hold the $0.50 support line as the ensuing Market euphoria that followed the Ripple vs. SEC victory rumor cools off.
Profit-taking XRP Whales are Back in the Game
A cohort of XRP whales booked profits as markets reacted to reports of a potential victory for Ripple in its ongoing lawsuit. But recent on-chain data shows that they have again begun to position for future gains.
According to Santiment, the cohort of crypto whales holding 1 million to 100 million balances has made a series of strategic movements in recent weeks. Following the 24% price spike on March 20, the whales promptly offloaded 420 million coins, worth $178 million, as of March 24.
As the market euphoria clears, the chart below shows that the whales have begun stacking their bags again. Between March 24 and April 10, they increased their balances by 280 million coins, priced at $140 million.
When large institutional investors start accumulating tokens during a bull rally, as observed above, it could inspire network-wide confidence.
Similarly, the downtrend of XRP’s Social volume also buttresses the bullish stance. According to Santiment, Social Volume measures the number of times a project is mentioned across relevant social media channels.
As seen below, XRP social volume has persistently declined since the local price peak. Between March 29 and April 10, it dropped 68% from 3,343 to 1,068 mentions.
A drop in social volume means a decrease in the number of people talking about that particular asset on social media. The decline in market euphoria could signal a perfect entry point for strategic investors looking to avoid buying at the top.
In summary, the flailing social volume could encourage more whales and sharks to pile on XRP in the coming weeks. And the ensuing buying pressure could see the XRP price climb higher.
XRP Price Prediction: $0.50 Retest Incoming
A crucial indicator of XRP’s potential price movements in the coming days is the on-chain Market-value-to-realized-value (MVRV) data. The chart shows that most holders who bought XRP in the last 30 days are currently sitting on 6.5% profits. Historically price data indicates that they may hold out until their profits reach 20%, around $0.58, before they start selling.
If XRP scales that sell zone, it may rally toward the $0.62 price range before holders begin a sell-off frenzy.
Yet, the bears can take control if the XRP price slips below $0.50. However, the holders could look to end the sell-off around a 1% loss line at $0.47.
Still, if that support zone does not hold, crypto investors can expect a larger drop toward $0.40 before holders choose to cut their losses
Disclaimer
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