Over the past few weeks, XRP has been hovering around the $0.5 mark as investors eagerly await a potential breakthrough. Interestingly, despite the lack of movement in XRP’s price, new data from on-chain sources suggests that large investors, known as whales, have been accumulating the token in anticipation of a possible surge. Specifically, addresses holding at least 100 million coins have been increasing their XRP holdings during the dip in the first ten days of June.
Supporting this observation is the Mean Dollar Invested Age (MDIA) metric, which offers further insights into investor behavior. As of June 1, the 90-day MDIA for XRP was at 1,812, indicating that investors are more inclined to hold onto their XRP assets rather than actively trade them.
Looking ahead, some analysts predict that XRP may be gearing up for a potential rally. Crypto analyst Dark Defender, in a recent post on June 12, pointed out that XRP has formed a familiar pattern dating back to 2017. By staying above a critical support level on the weekly timeframe, XRP has shown resilience during market volatility.
Furthermore, indicators suggest a possible reversal is on the horizon, with sentiment hovering close to oversold levels. The analyst highlights that surpassing $0.6640 and breaking through the $1 resistance mark could be crucial milestones that may lead to a sustained uptrend.
In addition, the expert provides a chart indicating that XRP’s price is currently testing the support line of an ascending channel, historically a good entry point for bullish positions. The stochastic oscillator nearing oversold levels suggests potential for upward movement, with a bounce back towards the upper trendline aiming for the $0.70 to $1.00 range in the coming months.
While XRP has not mirrored the movements of assets like Bitcoin, the cryptocurrency has strong underlying fundamentals that could trigger a breakout. A ruling in favor of Ripple in the ongoing case with the Securities Exchange Commission could act as a catalyst for XRP’s rally. Additionally, Ripple’s expanding network of partnerships with financial institutions globally adds credibility from institutional involvement. The market is also looking forward to the potential rally once Ripple introduces its stablecoin pegged to the US dollar.
As of the latest update, XRP is trading at $0.49, with a 2% increase in the past 24 hours. On a weekly basis, XRP is down by 6%. In the short term, XRP seems to be consolidating between the $0.47 support and the $0.50 resistance levels. A breakout above $0.50 could signal a move towards the next resistance at $0.52, while a breakdown below $0.47 could lead to further declines, with support levels around $0.45 or lower.
Please note that the information provided in this article is not investment advice. Investing carries risks, and capital is at risk when investing.
