- In a notable development, XRP witnessed a sharp 30% increase in its value last week following a favorable court ruling for Ripple against the SEC.
- Despite this uptick, XRP’s price didn’t meet anticipated targets, leading to significant investors, known as whales, liquidating their holdings.
- Current on-chain metrics suggest a notable correction in XRP’s price trajectory in the forthcoming days.
Discover the detailed analysis behind XRP’s recent price movements and what investors should anticipate in the crypto market.
XRP’s Recent Price Movement and Market Response
On August 7, XRP’s valuation spiked by 30%, touching $0.644. However, this rise was still short of the $0.658 peak achieved on July 30. The failure to reach higher levels in the current rally indicated subdued demand for the altcoin. Consequently, XRP has since dropped 9% from its recent peak and is now trading at approximately $0.585. Analysts note that should XRP gain upward momentum at the start of the week, it may retest the resistance level at $0.613.
On-Chain Data Reflects Bearish Sentiment
Technical analysis underscores a bearish outlook for XRP based on current on-chain data. Santiment’s “Supply Distribution By Balance” metric reveals that addresses holding between 1 million to 10 million XRP tokens amassed 230 million XRP between July 17 and August 2. In anticipation of a positive ruling for Ripple, these addresses unloaded 150 million XRP post-August 7, reducing their collective holdings to 3.8 billion. In addition, data from Whale Transaction Count, which monitors transactions valued at $100,000 or more, indicates large investors offloaded their assets during the aforementioned 30% price surge.
Strategic Considerations for Investors
Given the present market conditions, investors may consider adopting these strategies:
- Regularly track on-chain data for potential indications of further substantial selling activities.
- Evaluate key resistance and support levels to identify potential entry and exit points in trading.
- Keep an eye on Bitcoin’s movement, as it could have a significant impact on XRP’s price trends.
These strategies might aid investors in making informed decisions amidst market volatility.
Conclusion
To summarize, XRP’s significant price rally following Ripple’s legal win was counteracted by major investors liquidating their positions, leading to a price decline. Both technical and on-chain indicators project a bearish trend with possible short-term corrections imminent. However, these corrections could be influenced by Bitcoin’s performance. Investors should remain alert and strategically navigate the market based on ongoing developments.
