- In the midst of market volatility, XRP whales show resistance against the broader sell-off trend.
- Data indicates that long-term holders are not participating in the sell-off, hinting at a potential price recovery.
- A notable quote from Santiment reveals that the balance of XRP addresses with more than 1 billion tokens rose from 39.81% to 41.46% since mid-June.
Discover how XRP whales are influencing the market amidst a bearish trend and what this means for the token’s future price movement.
XRP Whales Accumulate Despite Market Downturn
Amidst a discouraging market scenario, Ripple (XRP) whales appear unfazed, showing an increasing trend of accumulation instead of selling. Santiment data reveals a rise in the balance of XRP addresses holding over 1 billion tokens from 39.81% in mid-June to 41.46% recently. This trend reflects the whales’ strategic purchase of XRP, potentially stabilizing its price amid broader market declines.
Impact of Whale Accumulation on XRP Price Stability
Whales, known for holding significant quantities of a cryptocurrency, play a pivotal role in price action. Recent data highlights an increase in balances held by addresses containing 1 to 10 million XRP tokens, from 6.08% to 6.20%. As whales accumulate, their actions could counteract market downtrends, providing support for XRP’s price.
Market Metrics: Dormant Circulation and Its Implications
As part of our analysis, we examined the dormant circulation metrics, which track the activity of long-held tokens. A rise in this metric often signals a movement from long-term holders into active trading, usually followed by selling pressure. However, current data shows a decline in XRP’s 90-day dormant circulation to 14.35 million, indicating long-term holders are not offloading their XRP holdings.
Technical Analysis: Is XRP Oversold?
From a technical standpoint, the Relative Strength Index (RSI) for XRP stands at 23.96, indicating an oversold condition. This oversold status typically suggests that XRP may be on the verge of a price rebound. Additionally, utilizing the Fibonacci retracement indicator, potential support and resistance levels for XRP can be identified, with a key target at the 23.6% Fib level, positioned at $0.45.
Conclusion
In conclusion, the current data and technical indicators suggest that XRP whales and long-term holders are playing a crucial role in mitigating the broader market’s sell-off impact. The accumulation by these key players hints at potential price stability or even a rebound. Investors and traders should consider these dynamics when making informed decisions about XRP.
