The price of Ripple (XRP) has grown by 10% in the past 3 weeks. Cross-chain data indicates that bullish movement among crypto whales is one of the main drivers behind the price hike. Are the bulls now paying $0.5 XRP price predictions?
XRP has outperformed BTC and ETH in May 2023 so far. Crypto whales appear to be riding a potential XRP price rally as the Ripple community grows more and more confident that a long-running SEC case will be closed in the coming weeks.
Given that the social sentiment surrounding XRP is currently negative, what are the odds that the current pump will develop into a prolonged bullish rally?
Crypto whales are piling on XRP
Crypto whales have doubled down on XRP bullish positions this month. On-chain data showing crypto whales holding 10-1 billion XRP in balance has been pivotal to the recent price pump.
Between April 30th and May 26th, they added 290 million XRP to their wallet balances.
At a current market value of $0.47, the new investment made by the whales this month is about $136 million.
Notably, the whale group owns a significant portion of the total circulating supply of XRP. With their influence, they can easily influence other retail investors to become optimistic themselves.
If they continue to buy in the coming weeks, it is only a matter of time before the $0.60 XRP price prediction is validated.
Potential victory over the SEC is not yet priced at
The general sentiment within the XRP community is currently trending negatively. This indicates that the potential victory in the Ripple vs. SEC case is yet to be priced in.
After approaching neutral territory on May 19, XRP weighted sentiments It has recently fallen deeper into negative territory towards -0.8 as of May 26th.
Santiment’s Weighted Sentiment Scale compares the ratio of positive to negative signals of an asset. When it heads down into negative territory during a price rally, it indicates that the asset is still flying under the radar of many investors.
Other stakeholders will likely turn bullish when the SEC win hits home. This could make the price of XRP gain more ground as the final court ruling approaches.
XRP Price Prediction: $0.60 is a viable target
Despite the recent infusion of 10%, and Santiment’s Market Value Realized Value (MVRV) data, most crypto investors who bought XRP over the past month are only holding onto a 2% profit.
The historical trading pattern suggests that they are likely to hold for a 7% gain. This means that XRP could reach $0.05 before encountering significant resistance.
And if XRP can break the $0.5 resistance level, the bulls could gather enough momentum to push towards $0.60.
Conversely, if the price of XRP drops below $0.45, the bullish narrative can still be invalidated by the bears. However, investors are likely to offer upside support at this level as they look to avoid slipping into a net loss position.
Otherwise, XRP could drop much lower towards the next important support level at $0.40.
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.