Whales bought Ripple for $80 million, but the price of XRP does not react with growth. Let's figure out why
Date: 2023-07-11 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
The price of the native token of the Ripple project has been just below $0.49 for the third week in a row.
As many crypto enthusiasts predicted, Ripple's legal battle with the US Securities and Exchange Commission was not completed in the first half of 2023. Due to the looming uncertainty, the price of XRP has been in the range of $0.47-0.49 for almost three weeks in a row, with whales and retail investors taking opposite positions.
Ripple whales hope for growth
Against the backdrop of obvious price stagnation, a large group of institutional investors have taken bullish positions this month.
The Santiment chart below shows that since the beginning of July, addresses with balances between 1 million and 100 million coins have replenished wallets with another 170 million XRP worth about $80 million.
Under normal circumstances, such a large inflow of funds within 10 days is enough to cause a significant jump in prices. However, on-chain data suggests that retail market participants currently have other plans.
Retail investors are losing interest in XRP
According to Santiment, the decrease in the number of daily active addresses naturally led to a drop in the total volume of transactions registered on the Ripple network.
Since the beginning of July, the total number of users making transactions has decreased by 50%, and the total volume of transactions over the same period has fallen by 92%. This indicates that retail investors are losing interest in XRP and switching to other assets. If the trend continues, the price of the asset will continue to move in the same range.
Ripple is unlikely to be able to overcome resistance
Given the above factors, the price of Ripple is unlikely to be able to overcome the resistance at around $0.50 in the coming days. This prediction is confirmed by the MVRV ratio: according to them, the majority of XRP holders are currently suffering a loss of 3%. Historical data suggests that many of them will sell tokens as soon as they break even.
However, if the bulls resist, the price of the asset could rise to $0.52.
In the event of a fall below $0.45, the initiative will go to the bears, who are likely to push XRP to $0.40.
