XRP recently hit its lowest point since November 13, 2023, with an 8% drop, revealing a critical support level at $0.5930. This level has consistently acted as a stronghold for the altcoin, fostering optimism for a potential rally.
During the recent decline, large wallet addresses holding between 10 million to 100 million XRP have been strategically accumulating the altcoin. This trend indicates confidence among significant investors in XRP’s potential, prompting them to capitalize on the dip for future gains.
On-chain metrics show positive indicators for XRP’s recovery. A decrease in whale profit-taking activities and a revival in development activities suggest a favorable environment for the altcoin. A decline in whale transactions valued over $100,000 and a reduction in whales selling XRP at a loss reinforce the idea of an impending turnaround for XRP’s fortune.
Market participants, especially those holding 10 to 100 million tokens, have exhibited a consistent accumulation pattern during dips and strategic distribution at local peaks over the last six months. This historical behavior, coupled with ongoing accumulation during the price drop, hints at a potential repeat scenario.
XRP’s development activity, after hitting a six-month low on January 17, 2024, has since shown a rebound. The revival in development activities is a significant factor contributing to a potential price recovery for XRP. As the altcoin’s ecosystem evolves, a correlation between development activity and price recovery becomes apparent. With XRP trading at $0.526 while writing, its ability to hold the $0.5930 support level and overcome resistance points will be pivotal in confirming its resurgence.