Investors are getting optimistic as the price of Ripple (XRP) entered its third week in a row, hovering below the $0.49 mark. Will Bearish Retail Investors Keep XRP Price Steady?
As many cryptocurrency enthusiasts had predicted, the long-running Ripple (XRP) lawsuit with the US SEC failed to reach a conclusion in the first half of 2023. The looming uncertainty has seen the price of XRP stagnate between $0.47 and $0.49 for three years. Almost consecutive weeks.
On-chain data shows that whale investors and retail market participants are now taking opposing positions.
XRP whales invested another $80 million in July
Amid the apparent slump in the price, a large group of institutional investors took long positions in XRP this month.
the Emotion The graph below shows that whales holding 1-100 million XRP coins have added 170 million coins to their wallet balances since the beginning of July.
With XRP prices currently hovering around $0.47, the new investment by the whales is worth around $80 million. Under normal circumstances, such a large influx of funds over a 10-day period is enough to cause the price to soar.
However, the on-chain data suggests that retail investors across the XRP ledger network are currently having other ideas.
A downward trend in network activity among retail investors could lead to flat prices
According to the data you have collected EmotionThe hawkish stance taken by retail investors in XRR appears to negate the bullish pressure of the whale.
As shown below, the decrease in Daily active headlines Withdraw the total transaction volume recorded via the XRP Ledger network.
Since the beginning of July, the total number of users posting transactions on the XRP ledger network has decreased by 50%. And despite accumulating $80 million whales, the total XRP transaction size It also crashed by a whopping 92% over the same period.
Daily active headlines It measures the level of activity among retail network participants by summarizing the number of wallet addresses executing transactions.
When it drops significantly, as noted above, it signifies that many retail investors are taking a hawkish stance. 90% decrease in total XRP transaction size This confirms the bearish projection.
In short, while the whales sound largely bullish, the on-chain data suggests that retail investors are taking a different tack. If this trend continues, XRP price is likely to remain neutral in the coming days.
XRP Price Prediction: $0.50 Still a Hurdle
Given the above factors, the bulls are unlikely to find enough momentum to expand the $0.50 resistance area in the coming days.
Confirming this prediction, the MVRV ratio shows that after the price has been in the doldrums for 3 weeks, most XRP holders are now experiencing losses of 3%. Historical data suggests that many can sell once they reach the $0.49 level.
But if the bulls clear that resistance, XRP could rally towards $0.52 before bouncing back.
With that said, the bears have a relatively equal chance of forcing a pullback if XRP loses the $0.45 support. However, investors can stop selling at around $0.46 to keep their losses below 5%.
However, if the support level is at $0.45, XRP could wane towards $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 providing 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.