Ripple’s (XRP) price has consistently disappointed investors, with the altcoin experiencing declines since the beginning of the month. Despite the downward trend, there are mixed signals suggesting that XRP may enter a period of consolidation.
Whale Activity and Market Signals
Whale Accumulation
XRP price shows mixed signs as whale investors try to initiate a recovery, while retail investors continue to pull back. Addresses holding between 1 million and 10 million XRP have accumulated over 100 million XRP in the last 48 hours, valued at approximately $47 million. This significant accumulation by whales is crucial for initiating a recovery, given the consistent price decline.
Retail Investor Sentiment
Retail investors, however, remain bearish and their participation on the network is minimal. This is evident in the declining number of active addresses, indicating a lack of profit-driven transactions. The divergence between XRP price and daily active addresses (DAA) is flashing a “sell” signal. If retail investors continue to retreat, the altcoin might face considerable resistance in its recovery efforts, potentially invalidating the attempts made by whales to boost the price.
XRP Price Prediction: Consolidation Ahead
Current Price and Support Levels
XRP is currently trading at $0.474, close to the crucial support level of $0.473. Despite the massive accumulation by whales, the current market cues suggest a sideways momentum for XRP, keeping the price range between $0.473 and $0.516. The $0.516 level aligns with the 23.6% Fibonacci Retracement, known as a bear market support floor. Reclaiming this level could potentially initiate a recovery for XRP.
Potential Risks
If the $0.473 support level is breached, XRP could test the critical support at $0.460. Losing this support would invalidate the bullish-neutral thesis, leading to further drawdown.