Ripple (XRP) gained 4.5% in the past two weeks.
According to onchain analysis, whales were actively buying the coin during this period, which can be seen as a bullish signal for XRP in the coming weeks.
May began for XRP -the native coin of the blockchain project Ripple -on a positive note. Apparently, big investors are hoping to recoup their April losses.
In this article, we look at what whale actions could support XRP’s upward momentum. Would you like to keep up with the latest developments in the world of the crypto industry?
Subscribe to our Telegram news channel. Nothing superfluous, just the latest news and analytics on cryptocurrencies
XRP whales are buying at lows
According to analyst resource Santiment, XRP whales have been actively accumulating the coin since the beginning of May.
Onchain statistics show that investors with assets ranging from 100 million to 1 billion XRP have been buying the token since the end of April.
In 14 trading days from April 21 to May 5 they added 610 million coins to their wallets.
XRP whale balances.
With a current market value of $0.47, these 610 million XRPs are worth about $287 million.
When cryptocurrencies inject so much money into the market in a short period of time, we can assume that they are preparing for a price increase.
When cryptocurrencies are pouring so much money into the market, we can assume that they are preparing for a increase in prices.
Whether Ripple will reach new heights in 2023 is in a special BeInCrypto article
The network’s user base is growing
In addition, there is a positive divergence between prices and the number of daily active addresses (DAAs) on the XRP network.
The price fell 4% between April 29 and May 5 while the number of DAAs increased by 27% during the same period.
DAA estimates the number of unique addresses interacting with blockchain daily.
If this indicator grows on the background of the price correction, we can say that the project’s foundation is still strong and its products are in high demand.
If this indicator grows on the background of the price correction, we can say that the project’s foundation is still strong and its products are in high demand.
Daily active Ripple addresses.
So whales accumulating coins and a growing number of active addresses are setting the stage for a bullish trend for XRP.
XRP is targeting $0.5
At XRP last week, the bulls fiercely defended $0.45 support.
Considering Santiment’s statistics on the market-to-market value ratio (MVRV), they are ready to push the price to the psychologically significant level of $0.50.
The majority of cryptoinvestors who bought XRP in the last month are sitting on unrealized losses of about 3%.
Historical data suggests they are unlikely to sell XRP unless it rallies another 10 percent to $0.50. If it can break through the $0.50 resistance level, it could trigger a prolonged rally.
If XRP were to break through the $0.50 resistance level, it could begin a long rally to the $0.60 zone before the bears catch up and try to regain control of the situation.
A drop in XRP below $0.45 looks unlikely at this stage as large investors will protect that barrier to limit unrealized losses.. If it passes, there is a high probability of a drop to $0.40.