Altcoins
Will XRP Hit $0.63? How Whales and Sharks Can Help Altcoins Rally
- The surge in XRP price can be attributed to increasing accumulation by whales, who now own 85% of the total supply.
- Open interest hit a three-month high, suggesting increased speculative activity.
Ripple [XRP] was one of the biggest gainers in recent days after its price hit $0.60. This price increase represented a 36.45% jump from the previous seven days.
As surprising as it may seem, AMBCrypto was able to identify the reasons for this increase. According to on-chain data provider Santiment, there was a significant increase in the holdings of addresses that owned more than 100,000 XRP.
Go big or go home
This group of investors, known as whales and sharks, has a great influence on prices. Simply put, if the assets held by this cohort fall, the price of a token will most likely fall.
Therefore, the increase in accumulation created buying pressure for XRP and was responsible for the rise.
The rise too revealed that these sharks and whales now represent 85% of the total supply, which is the highest point in 11 months.
Source: Santiment
If we see a scenario where whale holdings continue to climb, the token’s value could return to $0.63 or possibly increase.
Another reason why the token could reach this price is the imminent launch real-time cryptocurrency benchmark rates and indices on July 29.
It is important to emphasize, however, that these indices are not tradable futures products. Rather, they provide clear price data for the assets concerned.
Stagnant XRP Coins Are Now on the Move
Meanwhile, in the crypto derivatives market, XRP’s open interest (OI) reached $233.85 million. This is the highest value reached by the OI since April 12.
OI refers to the total value of open contracts in the market. When it increases, it means that speculative activity around a token has surged and the liquidity allocated to contracts is increasing.
But if it decreases, it implies the opposite. From a price point of view, the rise in the OI, if it continues, could still decline. XRP Price IncreaseIf so, the value of the crypto may reach $0.63 as mentioned earlier.
In addition to this, there was a notable peak In the 90-day MDIA, this acronym stands for Mean Dollar Invested Age.
As the name suggests, the metric is the average dollar invested in a cryptocurrency’s market capitalization.
Source: Santiment
In previous bull markets, an ascending MDIA line meant that whales were putting unused coins back into circulation. If this continues, XRP’s chances of reaching a higher price increase.
Read Ripples [XRP] Price forecast 2024-2025
According to this analysis, the token’s value could continue to extend its rally stated in the previous AMBCrypto article.
However, beyond the potential rise to $0.63, there is a chance that XRP could attempt to revisit $0.72 – a level it last reached in March.