XRP price maintained a positive start to the second quarter of 2023. After fiercely defending the $0.50 support in the first half of April, can rebounding whales and long-term holders push higher above $0.60?
On April 13, the Ripple (XRP) team announced the launch of the Institutional Crypto Liquidity Hub. The move could see XRP take advantage of its recent price gains as institutional traders turn to the hub for cross-chain liquidity and cross-border payments solutions.
Cross-chain data reveals that positive price performance and product updates have boosted the long-term confidence of crypto whales and XRP holders.
XRP whales are starting to buy again
After the sell-off that followed the XRP price rally on March 21, it appears that crypto whales are starting to pile up again.
The Santiment chart below shows that crypto whales holding 10 million to 100 million XRP added 30 million coins between March 24 and April 14.
350 million newly added valued at $182 million at current market value. When whales invest large sums within a short period, it creates demand and inspires confidence among other investors.
Likewise, the recent accumulation wave observed among long-term XRP holders is another important bullish sign.
According to Santiment, the average coin age on the XRP ledger network has entered an upward trend in recent weeks. After a network-wide sell-off in late March, the average lifespan of coins has been on the rise since April 1.
The chart below shows how it increased by 21%, from 23.64 to 28.84, between April 1st and April 4th.
Average coin life measures sentiment among long-term coin holders by multiplying the total coins on the network by the number of days they are spent at their current address. After declining in late March, the rise in the average age of the coin suggests that long-term investors are now bracing for future gains.
XRP Price Prediction: Can Bulls Pay $0.60?
Looking at the on-chain MVRV data provided by Santiment, XRP price could rally to $0.60 before encountering significant resistance.
Market Value to Realized Value (MVRV) data identifies potential buy/sell areas by evaluating the average price at which current asset holders have acquired.
The chart below shows that most BNB holders are currently earning profits of around 8%.
Historical MVRV data and price trends show that holders will likely sell around the 12% region. This means that once the price approaches $0.55, XRP may face some pullback
But if this resistance is broken, the bulls can push higher towards $0.62 before the short bears enter into a sell-off.
Conversely, the bears could cross out the bullish narrative if XRP price drops below the $0.49 support. However, the owners can look forward to closing the sale here and keeping their 5% dividend.
However, as this support level gives way, XRP can expect a larger decline towards $0.45 before holders choose to cut their losses at 2%.
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.