CoinTelegraph Report:
Data indicates that XRP whales have refrained from widespread market sell-offs. Long-term holders have also abstained from selling, suggesting potential for a price rebound for the token.
Despite persistent market dismay, Ripple [XRP] whales have opted not to exacerbate volatility. Instead, they have chosen to accumulate more tokens.
According to Santiment’s data, as of mid-June, addresses holding over 1 billion tokens of XRP accounted for approximately 39.81% of the total balance. However, this figure has since risen to 41.46% at the time of writing.
The whales provide a pathway
For groups ranging from 1 million to 10, the balance increased from 6.08% to 6.20%. Whales are entities holding large amounts of cryptocurrency, thereby exerting significant influence on prices.
Prices stabilize from recent accumulation. Under certain circumstances, they may rebound.
At the time of writing, XRP is priced at $0.43. This represents a 6.52% decrease over the past 24 hours. However, with recent whale activity, prices may stabilize near this level or approach $0.45.
Nevertheless, it should be noted that whale accumulation alone may not prevent price declines. Therefore, we at AMBCrypto evaluate other on-chain events.
One metric we examine is dormant cycles, tracking the rate at which long-term holders of tokens engage in trading activities.
An increase in dormant circulation implies that old tokens are transitioning from self-custody to active trading. If this occurs, it signals holders’ readiness to sell.
XRP prices aimed at breaking resistance
Consequently, this leads to price declines. However, when dormant cycle volume is low, the opposite holds true, as is the case at the time of writing. On July 1st, XRP’s 90-day dormant cycle volume surged.
But at the time of writing, this figure has dropped to 14.35 million. This decrease suggests that long-term holders of tokens have not moved their assets out of cold wallets.
If sustained, XRP can avoid the aforementioned sharp decline.
Additionally, we analyze XRP’s potential from a technical perspective. According to the daily chart, the Relative Strength Index (RSI) stands at 23.96. RSI measures momentum based on the magnitude of price changes.
When the index exceeds 70, it indicates overbought conditions. Conversely, when below, it suggests oversold conditions.
Therefore, XRP is oversold, indicating potential for a price rebound. To assess possible targets, AMBCrypto examines Fibonacci retracement levels, which identify potential support and resistance levels.
Read Ripple’s [XRP] Price Forecast 2024-2025
From the chart above, if XRP rebounds from its low point, prices may reach the 23.6% Fibonacci level, which stands at $0.45.
However, if selling pressure intensifies and whales also join, this forecast may prove inaccurate.
