XRP experienced a 30% surge in value last week after a court ruling in favor of Ripple against the SEC. Despite this increase, the price failed to reach the expected highs, prompting significant investors, known as whales, to offload their XRP holdings. On-chain indicators are pointing towards a substantial correction in XRP’s price in the coming days.
Ripple’s XRP Price Surge Limited
On August 7, XRP’s price climbed by 30%, reaching $0.644, which was still below the $0.658 peak seen on July 30. This lower peak indicated that the demand for the altcoin was weaker than anticipated, and as a result, XRP’s price has since dipped by 9% from its $0.644 high. Currently, XRP is trading at $0.585, suggesting a potential reversal of the recent gains. Analysts predict that if XRP manages to rise at the beginning of the week, it might test the $0.613 resistance level again.
On-Chain Data Shows Bearish Trend for XRP
Technical analysis highlights a bearish trend for XRP, supported by on-chain data. According to Santiment’s “Supply Distribution By Balance” metric, wallet addresses holding between 1 million and 10 million XRP accumulated 230 million XRP between July 17 and August 2. Anticipating a positive court ruling for Ripple, these addresses sold off 150 million XRP by August 7, reducing their holdings to 3.8 billion. Furthermore, the Whale Transaction Count, which tracks transactions worth $100,000 or more, confirms that substantial investors sold their assets during the 30% price surge on August 7.
What Strategy Can Investors Adopt?
Given the current market dynamics, investors might consider several strategies:
- Monitor on-chain data for signs of further large-scale selling.
- Assess the resistance and support levels for potential entry and exit points.
- Stay updated on Bitcoin’s movement, as it could influence XRP’s price trends.
These insights could help investors make informed decisions in a volatile market.
In conclusion, while XRP saw a significant price increase after the Ripple court victory, the inability to reach higher prices led major investors to sell off their holdings. Both technical and on-chain data suggest a bearish trend, with potential short-term corrections on the horizon. However, the extent of these corrections could be influenced by Bitcoin’s performance. Investors should stay vigilant and adopt strategic approaches based on market developments.