Buy The Dip? XRP Whales Doing Exactly That – Is A Price Rally Next?

Christian Encila

Last Updated: July 10, 2024 4:03 am

3 mins read

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The cryptocurrency market is still navigating rough seas, with substantial price declines seen in some digital assets. But it appears that XRP is on a different path. Despite the general cautious tone in the market, big investors, sometimes known as “whales,” have been covertly building up their XRP holdings. Some analysts are projecting a possible spike for XRP in the upcoming months based on this bullish behaviour by whales and favourable technical indicators.

XRP Whales Dive Deep: A Sign Of Confidence Or Opportunism?

The holdings of XRP whales (addresses owning over 1 billion tokens) have increased from about 40% in mid-June to 42% at the time of writing, according to data from blockchain analytics company Santiment. Whale accumulation has increased significantly, which may indicate that investors are becoming more optimistic about XRP’s prospects.

There are two possible interpretations for the current whale buying spree: It may indicate that they think XRP is cheap and about to rise. On the other hand, they may see the present decline to be a compelling chance to purchase.

The impact is evident even if the motivations driving the whale behaviour are yet unknown. Large purchase orders are flooding the market, which may help keep the price stable or possibly spark a brief upswing. Analysts warn that whale activity by itself cannot ensure a steady price increase.

Long-Term Holders Stay Put

On-chain analysis provides additional information on the possible trajectory of XRP, in addition to whale movements. A statistic that monitors the flow of tokens kept in long-term storage, known as dormant circulation, shows promise.

XRP is currently trading at $0.41. Chart: TradingView

The low dormant circulation of XRP at the moment suggests that long-term investors aren’t selling their holdings. This may indicate a willingness to hold onto the Ripple ecosystem for the long run and a probable reluctance to sell at the current levels.

A good omen is the low dormant circulation. It suggests that XRP’s long-term investors are sticking onto their holdings, which may help stop the price from falling any lower. This can provide a strong basis for a price hike in the future.

What Do Technical Charts Say?

For supporters of XRP, technical analysis—which examines past price data and chart patterns—also provides a ray of optimism. As of right now, the momentum indicator Relative Strength Index (RSI) indicates that XRP is oversold. This can indicate that a price increase is about to occur.

According to statistics from Coingecko, the price of XRP was $0.41 at the time of writing. This is a decrease of 4.82% from the day before. The value may, however, level off at the suggested price or perhaps climb towards $0.45 given the recent whale action.

A Cautiously Optimistic Projection

The cryptocurrency market is still uncertain, despite the fact that XRP’s recent whale accumulation, low inactive circulation, and favourable technical indications present a cautiously hopeful picture. The outcome of XRP’s prospective rally will depend on a number of variables, such as the general mood of the market, the regulatory framework governing Ripple’s continuing legal dispute with the SEC, and any unanticipated developments that may affect the market.

Featured image from Pexels, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.