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XRP Whales Accumulate More Tokens Despite Price Drop: Recovery Coming?
- The data revealed that XRP whales did not join the broader market sell-off.
- Long-term holders also refrained from selling, suggesting a possible rebound in the token’s price.
Even though the market is in a discouraging state, Ripple [XRP] The whales have decided not to fuel the fire. Instead, they are opting to buy more tokens.
According to Santiment, the balance of XRP holders’ addresses with more than 1 billion tokens was about 39.81% in mid-June. But at press time, that ratio had increased to 41.46%.
Big players offer a way out
For the 1 to 10 million group, the balance rose from 6.08% to 6.20%. Whales are entities that hold large volumes of a cryptocurrency. Therefore, their actions have a large influence on prices.
When things like the recent accumulation happen, prices stabilize from the downturn. In some cases, they bounce back.
Source: Santiment
At the time of writing, the price of XRP was $0.43. This is a decline of 6.52% in the last 24 hours. But with the recent whale actionthe value could stabilize around the indicated price, or even head towards $0.45.
However, it is important to note that the accumulation of whales alone would not prevent the price from falling. As a result, we at AMBCrypto have taken it upon ourselves to evaluate other on-chain events.
One of the metrics we looked at was dormant circulation. This metric tracks how quickly tokens that have been held for a long time are involved in transaction activity.
When dormant circulation increases, it means that old tokens are moving from self-custody to active trading. If this happens, it means that the token holders are ready to sell.
XRP Price Aims to Rise Above Resistance
Consequently, this leads to a decrease in prices. However, the opposite happens when dormant circulation is lowwhich was the case at press time. On July 1, XRP’s 90-day dormant circulation jumped.
But at press time, it had dropped to 14.35 million. This decline means that long-term holders of the token have refrained from moving their assets from cold wallets.
If held, XRP could avoid another crash as initially mentioned.
Source: Santiment
Additionally, we analyzed XRP potential from a technical perspective. According to the daily chart, the Relative Strength Index (RSI) was 23.96. The RSI measures momentum using the magnitude of price changes.
When the reading is above 70, it means that an asset is overbought. However, when it is below, it indicates an oversold condition.
Therefore, XRP has been oversold, indicating that the price may be on the verge of a reboundTo check possible targets, AMBCrypto looked at the Fibonacci retracement indicator, which identifies potential support and resistance levels.
Source: TradingView
Light Ripple [XRP] Price forecast 2024-2025
From the above chart, if XRP bounces from the lows, the price could reach the 23.6% Fibonacci level, which stands at $0.45.
However, this forecast could be invalidated if selling pressure increases and whales join in.