While the altcoin markets took a hit on the back of the negative sentiment surrounding the crypto industry, Ripple’s (XRP) price has stretched its month-on-month gains to 15%. On-chain data reveals that crypto whales banking on XRP have been pivotal to the ongoing price rally. Will XRP garner enough momentum to clear the $0.60 resistance?
As US SEC cracked down on Coinbase and Binance, institutional investors appear to be shifting capital toward the flagship cryptocurrencies in the top 20 rankings.
Here’s a data-driven analysis of how XRP could enter a bull rally amid turbulent conditions in broader crypto markets.
New Users are Flocking to The XRP Ledger Network
While the rest of the altcoin market has experienced a contraction, strategic crypto investors have been flocking to the XRP ledger network in recent weeks.
XRP Network Growth has increased since May 14, when 865 new wallet addresses were created on the Ripple blockchain network. Remarkably, that figure has more than tripled to reach 2,430 new addresses at the close of June 6.
Network growth tracks the number of new wallet addresses created daily on a blockchain network. When it rises during an industry-wide contraction, as seen above, it indicates the project is gaining market share from its competitors.
Evidently, the spike in Network Growth has already played a key role in the ongoing XRP price rally. XRP could break above the critical $0.60 resistance if the trend continues.
Crypto Whales Are Turning Bullish on XRP
Before the industry-wide retracement on Monday, Ripple’s (XRP) price had grazed $0.54 for the first time since March. This move saw XRP emerge as one of the best-performing altcoins in the top 20 crypto market rankings over the last 30 days.
On-chain data suggests that crypto whales stacking up their XRP bags have been pivotal to the ongoing price rally.
Between May 30 and June 6, XRP whales holding one million to 10 million coins have increased their holdings. The chart below shows how they have added 100 million coins worth nearly $53 million within the last 7 trading days alone.
The Whales wallet balances provide a real-time snapshot of the trading activity of different clusters of large institutional investors.
Remarkably, crypto whales have doubled down their bullish XRP positions this week. This appears to be a positive reaction to the SEC’s conspicuous decision to exclude the Ripple-issued coin from its list of cryptocurrencies labeled as securities in its lawsuit against Binance.
If the whales continue to demonstrate their confidence, XRP holders can anticipate more price gains in the coming weeks.
XRP Price Prediction: Can the Bulls Push For $0.60
XRP has made several unsuccessful attempts to break above 0.55 this year, all to no avail. But this time, the bulls could garner enough momentum to attain a new 2023 peak above $0.60.
According to Santiment’s Market-Value to Realized-Value (MVRV) data, most crypto investors that bought XRP within the past month are sitting on unrealized profits of around 7%.
The historical trading pattern suggests they are likely to hold out for 5% more gains before they start to sell around $0.56.
And If XRP can break beyond $0.56, it could rise by another 13% toward the $0.63 zone before facing the next significant resistance level.
Conversely, the bears could still flip the narrative if the XRP price drops below $0.50. Nevertheless, most investors will likely offer bullish support at this level as they look to avoid slipping into a net-loss position.
Otherwise, XRP could drop much lower toward the next significant support level at $0.45.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.