Markets

Bull whales are preparing for another rally

The price of Ripple (XRP) is up 4.5% over the past two weeks, despite an industry-wide correction in the altcoin markets. A buying trend among a group of bullish crypto whales indicates a positive prediction for the price of XRP for the coming weeks.

May has started on a bullish note for XRP, the parent currency of Ripple’s XRP Ledger blockchain. Whale investors are looking to reverse the negative 7% performance recorded in April. Here is how their recent bullish actions could validate the positive XRP price prediction.

XRP whales are buying in spite of the price correction

In May, XRP whales went into a piling frenzy, according to Santiment. The on-chain data presented below shows how crypto whale investors holding between 100 million and 1 billion have been buying XRP since the end of April.

In the 14 trading days between April 21st and May 5th, they added 610 million coins to their wallet balances.

Ripple (XRP) Price Prediction May 2023. Whale Wallet Balances Source: Emotion

At the current market price of $0.47, the newly added 610 million XRP is worth approximately $287 million. And when cryptocurrency whales invest such a huge amount in a few weeks, it indicates that they are preparing for price gains in the future.

There is positive divergence between pricing and the number of daily users

Furthermore, there has been positive divergence between prices and the number of daily active addresses (DAA) on the XRP network. Specifically, while the price fell 4% between April 29th and May 5th, the DAA moved upwards of 27%.

Ripple (XRP) Price Prediction May 2023. Daily Active Headlines.
Ripple (XRP) Price Prediction May 2023. Daily active headlines. source: Emotion

The DAA measures the number of unique addresses that interact on the blockchain network per day. When it rises during a price correction, it indicates that the fundamentals are still strong and that the underlying products hosted on the blockchain network are still in high demand.

Hence, with the accumulation trend between whales and the increase in DAA, XRP is likely to attract enough demand to drive its next bull run.

XRP Price Prediction: $0.50 for the Next High

Over the past week, bullish XRP holders have fiercely defended the $0.45 support level. According to Santiment’s Market Cap to Realized Value (MVRV) data, the bulls may now push for XRP’s bullish price prediction to reach $0.50.

Notably, most cryptocurrency investors who bought XRP over the past month are experiencing unrealized losses of around 3%. Historical data suggests that selling is unlikely until the price increases another 10% towards $0.50.

And if XRP can breach the $0.50 resistance, it could enter a prolonged rally towards the $0.60 area before the bears start to regain control.

Ripple (XRP) Price Prediction May 2023. MVRV Ratio.  May 2023.
Ripple (XRP) Price Prediction May 2023. MVRV Ratio. May 2023. Source: Emotion

On the flip side, the bears could still turn the narrative around if XRP price drops below $0.45. However, investors are likely to offer upside support at this level as they look to keep the loss position below 5%.

Otherwise, XRP could drop further towards the next important support level at $0.40.

Disclaimer

In line with 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 and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.

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