The price of the Ripple token project Ripple (XRP) has been below $0.70 for the past 11 days. Meanwhile, some key onchain metrics suggest that another price rally may be just around the corner and the coin could make a run toward the $1 mark.
A surge in online activity could send XRP toward $1
Despite the current downtrend in price, Ripple network activity has increased markedly over the past two weeks. According to Santiment, XRP attracted 182,860 active users on Aug. 8. After a slight decline, the figure rose again to 135,000 active addresses at the close of business on August 10.
The 182,860 active addresses on Aug. 9 was the peak in network activity this month. The last time this level of demand was recorded was in May.
In addition, this August peak is more than triple the previous month’s peak of 56 145 recorded on July 13, following Ripple’s high-profile victory over the SEC in court.
Ripple and daily active addresses. Source: Santiment
This metric measures the number of network members who are active on the network. Its growth indicates that demand and transaction activity on the blockchain is on the rise.
The above chart shows that over the past 4 months, the price of XRP has often strengthened by double digits when this indicator crossed the 100,000 mark. This could potentially have a positive impact on the token’s exchange rate.
Whales behind the scenes
The second important thing that could push the price towards the $1 mark is the frenzy of coin accumulation by large investors. A strategic cluster of whales holding between 10 million and 100 million coins has been buying up tokens since the beginning of August.
The chart below shows that at the end of July, Whale’s combined balance was 4.64 billion tokens. However, as of Aug. 11, it had increased to 4.69 billion, according to Santiment.
According to Santiment.
Ripple (XRP) and the balance of whales. Source: Santiment
Whale Wallet Balances data tracks the trading activity of large and institutional investors. At XRP’s current exchange rate of $0.63, Whale’s August inflows into Ripple have already totaled $31.5 million.
At the current exchange rate of XRP $0.63, Ripple has already seen $31.5 million in inflows.
This wave of accumulation suggests that whales have begun strategic buying as the price falls below $0.70.
In general, the two onchain metrics discussed above are important indicators that bode well for the token’s rise toward $1.
XRP outlook: new rally after consolidation
If the surge in online demand continues, the coin could surpass the $1 mark again during the next bullish move. This scenario is supported by the Market-Value to Realized-Value (MVRV) indicator, which shows the ratio of the market and realized value of the coin. It reflects the net financial position of the current holders of XRP.
The Santiment chart below shows that the majority of investors who bought XRP in the past 30 days are currently suffering 11% unrealized losses.
With this state of affairs, investors are likely to postpone plans for a major sell-off until they reach breakeven levels around $0.70 again.
At this point, investors are likely to hold off on plans for a major sell-off until they reach breakeven levels around $0.70.
But given the growing network activity, bulls could take that barrier and recover above the psychological $1 mark.
Ripple (XRP) and the MVRV ratio. Source: Santiment
And conversely, bears on XRP could trigger a prolonged price correction if XRP falls below $0.55. However, current hodlers will look to put up a wall of buying around $0.60 to avoid losses of more than 15%.