In recent market movements, Ripple (XRP) whales holding 100 million tokens or more have been actively increasing their holdings during the latest price dip. Despite XRP’s price down nearly 6% since June 1, these large wallet investors are seizing the opportunity to accumulate more tokens.
However, amidst this dip, Ripple has observed a decline in its on-chain activity, indicating a potential slowdown in network usage. The drop in active addresses, down nearly 40% in June, as noted by Santiment’s on-chain intelligence tracker, adds to the bearish sentiment surrounding XRP.
Despite the decline in on-chain activity, Ripple’s supply distribution metric reveals that large wallet investors across different segments, including those holding between 1 million to 10 million and 100 million to 1 billion tokens, have been adding to their holdings throughout June. The total XRP volume held by these whale wallets increased by nearly 2% between June 1 and 10, showcasing continued interest from institutional investors.
From a technical analysis standpoint, XRP appears poised for a further 7% correction, according to the XRP/USDT 1-day chart. Currently trading at $0.4876 on Binance, Ripple could find support levels at $0.4508 (June 7 low) and $0.4665 (April 19 low) in its decline.
The Relative Strength Index (RSI) is nearing oversold levels at 35.03, while the Moving Average Convergence Divergence (MACD) shows a bearish signal with red histogram bars below the neutral line. A daily candlestick close above the June 10 high of $0.5060 could invalidate the bearish thesis, with potential targets at the 50% Fibonacci retracement level of $0.5310.
In summary, while on-chain metrics paint a bearish picture for XRP’s short-term price movement, whale accumulation and technical analysis suggest potential support levels and future market trends to watch.