Ripple (XRP) price has consolidated around the $0.50 mark, but key on-chain indicators point to an imminent rally.
In July 2023, the price of Ripple reached a local high of $0.83, which allowed many long-term holders to exit their positions with a profit.
However, recent rumors that American investment giant BlackRock (NYSE: BLK)which has more than $9 trillion under management, is showing interest in XRP, could be the catalyst for a new rally.
Whales bought 690 million XRP in two months
After a two-month sell-off, Ripple’s price is down 40% from its peak of $0.83 on July 13. However, on-chain data shows that a group of crypto whales returned to accumulation once the asset price dropped below $0.70.
As shown in the chart below, between July 30 and September 15, addresses with a balance of 1 million to 100 million XRP added 690 million coins to their supply.
Source: Saintly
The value of the tokens purchased by the whales is currently around $345 million. If they remain positive, retail market participants could follow suit and begin to actively buy, triggering a new price rally.
RSI readings indicate an imminent trend reversal
Current dynamics of the relative strength index (RSI) also hints at the possibility of a quick change in the trend to an upward one. The chart below shows that it consolidated above the critical level of 30, reaching 40.88 on September 15.
Source: TradingView
RSI evaluates the strength and momentum of the current price trend. The growth of the index after a significant price correction suggests that a change in trend may be just around the corner.
Ripple price forecast: the nearest target is at $0.55
The growth of XRP in March, June and at the end of August 2023 fizzled out as it approached the $0.55 level. This means that the bulls will have to make significant efforts to overcome this resistance area.
Metrics MVRV (Market Value to Realized Value), which determines the ratio of the market value of an asset to its realized value, confirms this thesis. The chart below shows that most investors who bought Ripple within the last month would suffer a loss of 1.3% if they sold the tokens right now.
Given the growing interest of whales in XRP, as discussed above, holders can expect a rise to $0.60. But if they close their positions less than halfway to this level, the asset may face significant resistance at the $0.54 territory.
Source: Saintly
If it falls below $0.50, the initiative will pass to the bears. However, given that Ripple investors have not typically recorded losses of more than 10%, they may stop selling around $0.45.
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2023-09-17 11:44:00
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