Altcoin
Ripple whales would be responsible for XRP’s next bull run and this is why
Posted:
| Last updated: January 30th, 2024
Journalist
Sharing a statistically significant positive correlation with Bitcoin [BTC], the price of Ripple’s XRP has been impacted by the price decline suffered by the king coin in the past seven days. Exchanging hands at $0.3422 at press time, the price per XRP dropped by 12% within that period. So far this month, the token has declined by 14%. This comes after XRP’s price rallied by over 15% in July.
XRP in the last 24 hours
Impacted by the series of liquidations that hit the cryptocurrency market, XRP has suffered $1,586,572 in liquidations in the last 24 hours. The fall in the price of the token led to a decline in its trading volume. Standing at 1.32 billion at press time, XRP’s trading volume declined by 19% in the past 24 hours.
Source: Santiment
On a daily chart, XRP had traded in a tight range since 31 July. Posting a double-digit decline during the intraday trading session of 19 August broke the tight range in a downtrend. With a decline in XRP accumulation in the last few days, its Relative Strength Index (RSI) breached the 50-neutral region in a downtrend to be pegged at 38 as of this writing. Also indicating a hike in selling pressure, the token’s Money Flow Index (MFI) was 39 at press time.
Source: TradingView
A tale of 20 days
On-chain data revealed a decline in the token’s network activity since the beginning of August. The index for active addresses transacting XRP tokens daily has dropped by 31% in the past 20 days. Furthermore, the rate at which new addresses joined the network since the month started has slowed. At the time of writing, this figure declined by 17%.
Source: Santiment
However, regardless of the decline in network activity in the past few days, XRP logged significant whale activity before the close of trading hours on 19 August. According to data from Santiment, the token saw 452 whale transactions of $100,000 and above, the highest count since May. Also, the token’s weighted sentiment, at 1.013 as of this writing, was at its highest level since April.
Source: Santiment
It is worth noting that in the last six months, whale addresses holding between 10,000 to 10,000,000 XRP tokens have gradually increased their XRP holdings. This is in spite of the fact that the price has been on a decline since November 2021, and it currently trades at its February 2021 level.
Source: Santiment
