XRP, also known as Ripple, has surpassed the $0.45 mark for the first time since November 2022. Despite the bullish sentiment, on-chain analysis indicates that the market’s whales are poised to unload their holdings.
It remains to be seen how much XRP will decline in the following weeks. As the price of XRP continues to climb, retail investors are jumping on the bandwagon, while whale investors are beginning to reap their rewards by cashing out.
Whales sell XRP
Over the past week, Ripple’s XRP has experienced a significant price surge of 27%, with investors eagerly buying into the sixth-largest cryptocurrency in anticipation of a positive outcome in the ongoing case against the US Securities and Exchange Commission (SEC).
Experts at BeInCrypto previously analyzed how the outcome of the Ripple case could impact the broader cryptocurrency industry.
The buying spree was triggered by Ripple’s announcement, citing a recent US Supreme Court ruling on Binance.US’s attempt to purchase Voyager Digital, a failed cryptocurrency lender.
The court denied the SEC’s request to classify Voyager’s VGX token as a security, as well as BinanceUS as an unregistered securities exchange. This decision was widely celebrated by the market. However, the whales’ selling, along with other on-chain indicators, suggests that a correction in price may be imminent.
According to Santiment, a strategic whale group has sold approximately $140 million worth of XRP tokens over the past two weeks, causing the value of XRP to drop by 300 million units, equivalent to around $141 million, between March 9th and 27th.
XRP Forecast: $0.50 is a serious barrier
As the Market Value to Realized Value Ratio (MVRV) for XRP continues to reach local highs, token holders and community members are gripped by a sense of euphoria, often leading to cascading sales as soon as someone decides to sell at the peak.
According to Santiment, the MVRV is an important indicator of XRP price performance, comparing an asset’s market capitalization to its realized capitalization. As per the MVRV chart, the majority of XRP holders who purchased the cryptocurrency in the last 30 days are currently making a profit of 15%.
Historical data indicates that XRP holders frequently sell until the price approaches the 6% profit zone, where they prepare for a new uptrend.
Based on this trend, it’s likely that holders will continue to sell until the price of XRP drops to $0.42. If this support line fails, the selling could continue until XRP approaches the 5% loss line at $0.35, at which point many will look to cut their losses.
However, if XRP manages to overcome the current bearish factors, it could potentially reach the 22% zone at $0.50, which is a serious barrier. The next significant level is $0.60, where holders may also start taking profits.