Ripple (XRP) failed to take the $0.50 barrier. Whether to wait for the rollback deepening
Date: 2023-07-07 Author: Karina Ziganova Categories: IN WORLD
The price of Ripple over the past two weeks has fluctuated mainly between $0.46 and $0.48. Network members are losing interest in XRP, but whales can offer support.
In recent weeks, the price of the Ripple project token (XRP) has failed to break above the critical resistance level of $0.50. Ripple whales are trying to contain bears, but the XRP rate remains in danger of a potential pullback.
XRP whales seek to ease bearish pressure
While the price trend for XRP remains neutral, a cohort of whales has begun to exert bullish pressure behind the scenes. According to Santiment, between July 2 and July 6, XRP whales holding between 10 and 100 million XRP replenished their wallets with 280 million coins.
Since the price of XRP at the time of writing is about $0.47, the value of fresh investments in the asset is approximately $131 million.
Retail user activity is declining
Although whales are ramping up bullish pressure, XRP retail market participants seem to be losing interest in the coin. According to on-chain data, intraday user activity on the XRP network has decreased significantly this week.
The chart below shows that on July 5, 128,110 active addresses were registered on the XRP Ledger network (7-day figure). This is an 85% decrease from the recent high of 867,820 recorded a week ago, on June 29.
The averaged 7-day active address metric (7d) evaluates changes in user activity by summing up the total number of addresses that have transacted on the network over a seven-day period.
When it falls, it is a bearish signal, indicating that fewer market participants are making transactions. Given this decline in transactional activity, XRP may have trouble attracting enough demand to bring the price out of its current neutral state
Ripple forecast: the threat of prolonged stagnation around $0.46
On-chain data on the Ripple network is currently giving contradictory signals, promising long-term stagnation around the $0.46 mark. The Market-Value to Realized-Value (MVRV) ratio, which demonstrates the ratio of the market and realized value of the coin, confirms this forecast.
The chart below shows that the majority of investors who have bought XRP in the last 30 days are suffering a 2% loss. Given the neutral sentiment in the market, most of them are likely to prefer to wait for the breakout of the $0.49 breakeven level before starting selling.
If XRP breaks through this wall of selling, the next resistance level could be the $0.52 mark.
However, the bears are likely to resist in an attempt to push the price towards $0.40. For their part, the bulls will try to keep the price above $0.45 to avoid losses of more than 5%. If they do not have enough strength, the price of XRP may drop to $0.40.
