Ripple (XRP) has been trading consistently above $0.49 in the past two weeks. A deep dive into the on-chain data shows that the XRP ledger network may see further price gains in the coming weeks.
Following media reports of a possible victory in the ongoing Securities and Exchange Commission (SEC) lawsuit, the price of XRP surged 24% on March 20. The rally continued through March 29, reaching a 10-month high of $0.54.
However, cryptocurrency investors raised bearish fears after the 10% correction that saw XRP drop below $0.50 on April 3. The on-chain data reveals how the bullish whales helped hold the $0.50 support line with the market euphoria that followed Ripple’s victory against the SEC. The rumors subside.
XRP profit-taking whales are back in the game
A group of XRP whales reaped profits as markets reacted to reports of a possible victory for Ripple in its ongoing lawsuit. But recent on-chain data shows that they are once again starting to make a stand for future gains.
According to Santiment, the 1-100 million-to-100 million-balance crypto whale group has made a series of strategic moves in recent weeks. After a 24% price hike on March 20, whales immediately dumped 420 million coins, worth $178 million, as of March 24.
As the market’s euphoria wears off, the chart below shows that the whales are starting to stack their bags again. Between March 24th and April 10th, they increased their balances by 280 million coins, at a price of $140 million.
When large institutional investors start accumulating tokens during a bull rally, as noted above, this can inspire confidence at the network level.
Likewise, the downward trend in XRP social volume also supports the bullish stance. According to Santiment, Social Volume measures the number of times a project is mentioned across relevant social media channels.
As shown below, the social volume of XRP has been steadily declining since the local price peak. Between March 29 and April 10, it decreased by 68% from 3,343 to 1,068 signals.
A decrease in social volume means a decrease in the number of people talking about that particular asset on social media. A drop in market euphoria may signal an ideal entry point for strategic investors looking to avoid buying from the top.
In short, the declining social volume could encourage more whales and sharks to accumulate XRP in the coming weeks. Subsequent buying pressure may drive the price of XRP higher.
XRP Price Prediction: A retest of $0.50 is likely
A crucial indicator of the potential price movements of XRP in the coming days is the on-chain Market Value Realized Value (MVRV) data. The graph shows that most of the XRP holders in the last 30 days are currently reaping 6.5% in profits. Historical price data suggests it may hold until it gains 20%, around $0.58, before it starts selling.
If XRP scales the short zone, it could rally towards the $0.62 price range before the short holders start a sell-off.
However, the bears could take control if the price of XRP drops below $0.50. However, holders can look to end selling around the 1% loss line at $0.47.
However, if this support area does not hold, cryptocurrency investors can expect a larger drop towards $0.40 before holders opt to cut their losses.
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.