The XRP bulls fiercely defended the $0.45 price support area despite the industry-wide downturn in the altcoin markets. But can they consolidate in a bullish price reversal in the coming days?
After taking profits in late March and early April, it appears that large institutional investors in Ripple are making a U-turn. If the negative market sentiment is also interpreted by other investors as a bullish signal to buy the dip, can XRP price break above $0.60?
XRP whales are buying dives
XRP price lost the crucial support at $0.50 last week. But behind the scenes, a group of big investors holding between 1 million and 10 million XRP coins bought the dip. According to on-chain data from Santiment, this group of smart whales has added 80 million coins to their wallet balances over the past two weeks.
At the current market price of $0.46, the value of the newly added XRP coins is $36 million. This positive divergence between the price and buy trends between the whales could be a crucial indicator of an imminent price recovery.
In general, when whales continue to buy during a price correction, it reaffirms confidence in the underlying technology and products built on the network. Also, given how this particular group of whales has successfully timed price hikes in the past, it is only a matter of time before XRP enters another bullish push in the price.
Ripple market sentiment is near its lowest level in two months
The Ripple (XRP) ecosystem turned into ecstasy in late March when news broke of a possible victory in a notorious SEC lawsuit. On-chain indicators now show that the market euphoria may be over. As of April 24, the XRP weighted sentiment is holding at -0.57, after hitting its lowest level since February 2.
In general, weighted sentiment tracks the market’s perception of a particular asset by comparing the ratio of positive to negative social media mentions. When the weighted sentiment drops to a new local low, it usually indicates an imminent reversal of an ongoing downtrend.
XRP Price Prediction: A rebound above $0.50 is likely
Over the past week, bullish XRP holders defended the $0.45 support level. But, according to on-chain data, 2022 was the last time that the market capitalization to realized value (MVRV) ratio for XRP fell to current levels. This was immediately followed by 12% price gains in November-December 2022. Hence, this indicates that a rally in the price of XRP may now be on the cards.
However, the bears could still turn the narrative around if the price of XRP drops below $0.45. But historically, XRP investors have usually avoided taking losses below the 10% range. Thus, their fierce bullish support can be counted on at this level.
However, if the $0.45 support level fails, XRP could drop further towards the 18% loss range at $0.41. But if this scenario plays out, the majority of stockholders may stop selling and inadvertently cause a rally.
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.