Bittime - XRP price has fallen again after a slight rebound in the last trading session. Despite the price drop, large investors or commonly called "whales" still show high buying interest. On-chain data reveals that whales are actively accumulating, showing a "buy the dip" strategy. Does this indicate a potential recovery in XRP price?
Whales Buy XRP When Price Drops
The distribution of XRP holdings shows an increase in the balance of large wallets, namely those holding between 1 million and 100 million XRP. This analysis shows that even though the price of XRP is correcting, whales continue to buy in large quantities, increasing their accumulation. This accumulation phase becomes more intense when the price of XRP faces downward pressure, indicating a buying strategy at low prices by large investors.
Also read: History of Ripple (XRP) that You Must Know
History shows that whale accumulation during bear markets is often a sign of an upcoming recovery. These large holders usually position themselves strategically, anticipating a positive trend reversal.
Source: Santiment
Key Support Levels That Provide Stabilization
XRP price has now managed to find strong support at $2.32, supported by the 50-day Moving Average at $1.59. Although XRP has struggled to break through the Fibonacci retracement level at $2.46, the token’s ability to hold above the important moving average indicates underlying bullish sentiment.
The continued strong trading volume also indicates continued market interest. The combination of whale accumulation and reduced selling pressure has increased XRP’s ability to navigate existing resistance levels, paving the way for a possible price recovery.
MVRV Indicator Shows Reducing Selling Pressure
According to Santiment’s 30-day MVRV Ratio chart, there has been a significant drop to around 5.91%, indicating reduced profit-taking by XRP holders who bought in the past month. A neutral or low MVRV ratio reduces the likelihood of short-term selling, which is in line with the accumulation phase that whales are currently in.
Also read: XRP Predicted to Break All Time High (ATH) Before January
The combination of reduced selling pressure, increased whale activity, and stabilization above key support levels provides a slightly optimistic outlook for XRP price. Although resistance around $2.46 is still present, these indicators collectively signal that a price recovery in the coming weeks is very likely.
Conclusion
The current XRP market conditions show strong whale accumulation and reduced selling pressure. This provides a solid basis for a possible price recovery. The market focus is now on whether XRP can overcome the existing resistance and extend its rise. The next few trading sessions will determine whether XRP can continue its bullish trend or not.
Ripple (XRP) FAQs
What is XRP?
XRP is a cryptocurrency designed to facilitate cross-border transactions in a fast and low-cost manner, using a decentralized ledger system called the XRP Ledger.
What is the difference between Ripple and XRP?
Ripple is a company that develops payment technology, while XRP is a digital currency used in the RippleNet network for international transactions.
Why is XRP in legal trouble with the SEC?
The SEC sued Ripple for selling XRP as a security without proper registration, which is considered a violation of capital market regulations.
How to Buy Crypto on Bittime
Want to trade and buy Bitcoin and invest in crypto easily? Bittime is ready to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures that every transaction is safe and fast.
Start by registering and verifying your identity, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!
Check BTC to IDR , ETH to IDR , SOL to IDR and other crypto assets rates to find out today's crypto market trends in real-time on Bittime.
Also, visit Bittime Blog for interesting updates and educational information about the crypto world. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the crypto world.
Reference
AMB Crypto, XRP whales buy the dip – Analyzing impact on price action , accessed 22 December 2024.
Coin Stats, XRP whales buy the dip – Analyzing impact on price action , accessed 22 December 2024.
Comments
0 comments
Please sign in to leave a comment.