Ripple (XRP) experienced a resurgence in its price last weekend, surpassing the $0.5 support level following the Bitcoin halving. This increase reflects growing investor confidence after a period of uncertainty caused by geopolitical tensions. However, the XRP price struggled to maintain its upward momentum.
According to the Santiment Report, the market has been relatively stagnant since then, with the token unable to surpass the $0.5622 resistance level. It appears that a downward support level has been established at $0.54, resulting in sideways trading.
Despite this, the popular altcoin has seen support levels decline from a monthly high of $0.6422 and a peak in March at $0.7484, reaching as low as $0.4294. This drop in price was seen as an opportunity by whales, who are known for their significant purchases. Santiment’s blockchain data reveals that these large investors have been accumulating millions of XRP, suggesting a positive long-term outlook for the project.
Renowned cryptocurrency analyst Ali Charts has also highlighted the activities of these whales, reporting that they purchased at least 31 million XRP last week. This could result in an 11.27% increase in the distribution of supply across 249 addresses. In the last two weeks alone, whales have acquired up to 600 million XRP. Despite the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC), this active accumulation by major whale addresses demonstrates investor confidence in XRP.
The market value to realized value (MVRV) ratio for the 30 and 180-day periods confirms that XRP is still within a buying zone, attracting investors who anticipate a bull market in 2024. However, data from the four-hour chart based on the Moving Average Convergence Divergence (MACD) suggests a bearish trend. If whales continue to rally behind XRP in the coming weeks, the token may gain enough momentum to close the gap and reach $1. Furthermore, the bullish price movement could create FOMO (fear of missing out), potentially accelerating the breakout speed.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks. It is advisable to conduct thorough research before making any investment decisions.
