XRP Whales Increasing Accumulation Near 05 Possible Breakout on the Horizon
Over the past few weeks, XRP has been hovering around the $0.5 mark as investors eagerly await a potential price breakout. Interestingly, despite the lack of movement in XRP’s price, new on-chain data reveals that large investors, known as whales, have been accumulating the token in anticipation of a possible rally. Specifically, addresses holding at least 100 million coins have been increasing their XRP holdings during the dip in the first ten days of June.
Further supporting this observation is the Mean Dollar Invested Age (MDIA) metric, which provides valuable insights into investor behavior. As of June 1, the 90-day MDIA for XRP was at 1,812, indicating that investors are choosing to hold onto their XRP holdings rather than actively trade them.
When assessing the potential price movement of XRP, renowned crypto analyst Dark Defender has suggested that the token may be gearing up for a rally. In a recent post on June 12, the analyst pointed out a familiar pattern from 2017 in XRP’s price movement. By positioning itself above a critical support level on the weekly timeframe, XRP has demonstrated resilience in the face of market turbulence in the past.
Moreover, indicators suggest a possible reversal in the near future, with sentiment approaching oversold territory. According to the analyst, crossing above $0.6640 and breaking the $1 resistance level are key milestones that could trigger a sustained uptrend.
On the technical side, the stochastic oscillator is nearing the oversold region, indicating potential for upward movement if historical patterns repeat themselves. Maintaining the support line could lead to a bounce back towards the upper trendline, aiming for the $0.70 to $1.00 range in the coming months.
Despite XRP’s failure to mirror the movements of assets like Bitcoin, the cryptocurrency has solid underlying fundamentals that could drive a breakout. The outcome of the ongoing legal battle between Ripple and the Securities Exchange Commission (SEC) could serve as a catalyst for XRP’s rally. Additionally, Ripple’s expanding network of partnerships with financial institutions globally is expected to bring institutional credibility, paving the way for a potential surge in XRP’s price once the company launches its stablecoin pegged to the US dollar.
At the time of writing, XRP was trading at $0.49, showing a 2% increase in the last 24 hours. On a weekly basis, XRP was down 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.
Disclaimer: The content presented here should not be interpreted as investment advice. Investing in cryptocurrencies is speculative, and there is a risk of capital loss.