While altcoin markets in general have suffered from overall negative sentiment in the crypto industry, the price of Ripple (XRP) rose 3.5% in the past week
Note data shows that cryptocurrencies played a key role in the XRP price rally. Will XRP get enough momentum to overcome $0.60 resistance?
As the SEC tightens the screws on Coinbase and Binance, institutional investors seem to be turning their attention to the top-20 flagship cryptocurrencies. That said, according to current statistics, the Ripple XRP project coin is among the potential candidates for a bullish rally amid turmoil in the cryptocurrency markets.
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New users flock to the XRP network
While the rest of the altcoin market has been in decline, strategic crypto investors have been flocking to the XRP blockchain network in recent weeks.
The network’s growth rate has been increasing since May 14, when 865 new wallets were created on the Ripple blockchain. Since then, it has more than tripled to 2,430 new addresses as of June 6.
Ripple (XRP) and network growth. Source: Santiment
The Network Growth Indicator tracks the number of new addresses created daily on the blockchain network. When it rises during an industry-wide downturn, as shown above, it indicates that the project is gaining market share from its competitors.
Obviously, the surge in this metric has already played a key role in the continued growth of XRP. If this favorable trend continues, XRP could break above the critical resistance level of $0.60.
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Cryptocurrencies become bullish on XRP
Before Monday’s general pullback, the price of Ripple (XRP) hit $0.54 for the first time since March. The move made XRP one of the best-performing altcoins in the top 20 cryptocurrencies of the past 30 days.
Nechain data suggests that cryptocurrencies on XRP have played a crucial role in the token’s price rally.
From May 30 to June 6, XRP whales, who own between 1 million and 10 million coins, actively built up a bullish position. The chart below shows that they have added 100 million XRP coins worth almost $53 million to their reserves in the last 7 trading days alone.
Ripple (XRP) and cryptocurrencies. Source: Santiment
Whale wallet balances provide real-time insight into the trading activity of various clusters of large institutional investors.
It’s noteworthy that cryptocurrencies have been building up their bullish positions on XRP this week. Apparently, this is a positive reaction to the SEC’s decision to exclude Ripple-issued coins from the list of cryptocurrencies recognized as securities in its lawsuit against Binance. The whales apparently took this as an additional signal of a potential victory for Ripple in a protracted legal battle with the SEC.
If the whales continue to show confidence, XRP holders can expect to see further price gains in the coming weeks.
Today’s BeInCrypto editorial also reported that crypto startup Ripple was one of the top 10 largest fintech companies in America, according to Forbes.
XRP price forecast: could bulls reach $0.60
XRP has made several unsuccessful attempts this year to break above $0.55 but all to no avail. But this time, the bulls may gain enough momentum to update the 2023 highs above $0.60.
This time, the bulls may gain enough momentum to update the 2023 highs above $0.60.
According to the Santiment Market-Value to Realized-Value (MVRV) indicator, which shows the market to realized value ratio of the coin, most crypto investors who have bought XRP over the past month are in the unrealized profit zone of about 7%.
Historical trading patterns suggest that such hodlers are likely to hold out for a while longer before they start selling around $0.56.
Historical trading patterns suggest that such hodlers are likely to hold out for a while longer before they start selling around $0.56.
If XRP can break above $0.56, it could rise another 13% to the $0.63 area before hitting the next significant level of resistance.
Ripple (XRP) and MVRV indicator. Source: Santiment
And conversely, bears can still reverse course if the price of XRP falls below $0.50. However, most investors are likely to be bullish on the price at this level as they look to avoid getting into a net-loss position.
Otherwise, the price of XRP could fall much lower, to the next significant support level of $0.45.