As a seasoned analyst with over two decades of market analysis under my belt, I have seen countless price movements and trends that have shaped the crypto landscape. The recent 30% surge in Ripple (XRP) is one such event that caught my attention. However, as a prudent investor, I always advise caution when analyzing market trends and not getting carried away by short-term fluctuations.
Last week, the price of Ripple (XRP) surged by 30% due to the positive outcome of the SEC vs. Ripple lawsuit. Although this surge was significant, it didn’t lead to a new high that prompted large investors to sell their XRP holdings. This on-chain activity suggests that XRP’s value could experience a substantial correction in the near future.
XRP Price ready to slide lower
On August 7th, the value of XRP increased by approximately 30%, reaching a peak of $0.644. However, this peak was lower than the previous top on July 30th, which was at $0.658. This suggests that the market structure indicates weak demand, as the buyers were unable to push the token price beyond its previous high. Since then, Ripple’s price has dropped by around 9% from the peak of $0.644.
As XRP price exchanges hands at $0.585, investors can expect the 30% rally to come undone soon.
As I analyze the crypto market at the start of this week, it appears that XRP, a digital token focused on remittances, may experience a rally. If this rally pushes the price towards the resistance level of approximately $0.613, it could signal a test of this level. Should the price be rejected at this point, it would suggest that buyers might be running out of steam, potentially leading to a nearly 10% correction. This correction could take XRP’s price down to the support range around $0.560 to $0.555.
On-chain Data Suggests Bearish Outlook for Ripple
Based on technical analysis, there appears to be a pessimistic forecast for XRP prices. However, on-chain data indicates otherwise. According to Santiment’s Supply Distribution By Balance metric, wallets holding between 1 million and 10 million XRP amassed approximately 230 million tokens from July 17 to August 2, suggesting that they anticipate a favorable resolution in the SEC vs. Ripple lawsuit, potentially influencing a bullish trend for XRP.
Initially purchased wallets subsequently realized gains and sold their tokens. By August 7th, the amount held in these wallets had decreased to approximately 3.8 billion following the sale of 150 million XRP.
Furthermore, the Whale Transaction Count measure supports this trend, focusing on transactions valued at $100,000 or above. On August 7, this statistic surged significantly as the XRP price jumped by 30%, suggesting that large investors (or ‘whales’) were offloading their XRP holdings.
As an analyst, I’ve been closely watching the market dynamics, and my analysis suggests that the technical and on-chain indicators point towards institutional investors offloading their Ripple holdings post the verdict of the SEC vs. Ripple lawsuit. This sell-off, in the short term, may lead to a price correction. However, if the Bitcoin price maintains its upward momentum, this correction could potentially be reversed.
As a seasoned cryptocurrency investor with years of experience under my belt, I can confidently say that a breakthrough above the $0.613 resistance level for XRP could be a significant development. Having witnessed numerous market fluctuations and trends, I have learned that crossing critical resistance levels can often lead to increased buying activity and price surges. If this barrier is flipped into a support floor, it could potentially attract a wave of bullish momentum, propelling XRP towards the next key hurdle at $0.655. This move could be an exciting opportunity for investors like myself who are eagerly watching the crypto market.
Read more: Ripple Stablecoin RLUSD Private Beta Live On XRP Ledger & Ethereum Mainnet
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- USD PHP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- GLM PREDICTION. GLM cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- USD COP PREDICTION
- USD ZAR PREDICTION
- CSPR PREDICTION. CSPR cryptocurrency
2024-08-10 12:47