The price of Ripple (XRP) has mostly hovered between $0.46 and $0.48 for the past two weeks. While network participants are losing interest, on-chain data reveals that XRP whale investors could provide bullish support. Is XRP price at risk of a bearish reversal?
Ripple (XRP) price failed to break above the critical $0.50 resistance in the past weeks. Amidst the efforts of whales to keep the bears at bay, the price of XRP remains vulnerable to a possible pullback.
XRP whales are looking to ease the bearish pressure
While the XRP price trend remained neutral, a group of savvy price whales began to exert bullish pressure behind the scenes. Between July 2nd and July 6th, XRP whales holding 10-100 million coins added 280 million coins to their wallet balances.
With XRP prices currently at $0.47, the new investment is worth approximately $131 million. With such a large outflow in less than a week, the bullish whales may be looking hard to fend off the risks of a major XRP price correction.
Retail user activity is on a downward trend
While the savvy price whales are piling up under the bullish pressure, retail XRP market participants appear to be losing interest. According to on-chain data, XRP daily user activity has dropped significantly this week.
The chart below shows that the XRP Ledger Network recorded 128,110 active addresses (7 days) on July 5th. Significantly, this is a decrease of 85% compared to the recent high of 867,820 recorded a week ago on June 29.
the active addresses (7d) Metric evaluates changes in user activity by summarizing the total number of addresses that executed transactions on the blockchain network over a seven-day period.
When it decreases, a bearish signal indicates that fewer market participants are making economic transactions.
Given this decline in trading activity, the XRP price may struggle to attract enough demand to push the price away from the current neutral state.
XRP Price: Potential Risk of a Prolonged Recession at $0.46
The on-chain XRP data is currently flashing mixed signals pointing to a prolonged stagnation around the $0.46 mark. The MVRV ratio supports this view.
The chart below shows that the majority of investors who have bought XRP in the last 30 days are seeing losses of 2%. Given the neutral market sentiment, most of them are likely to hold until they reach $0.49 before they start selling.
However, if XRP breaks this selling wall, the next resistance point could be $0.52.
However, the bears are likely to put up a fight as they look to force a move towards $0.40. However, the upside move might intensify buying pressure to keep the price above $0.45 and avoid further losses of 5%.
However, if they do not have enough in the tank, this could put the price of XRP at risk of sliding 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 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.