Over the last three months, there has been a noticeable increase in the number of large investors holding significant amounts of Ripple (XRP) tokens, according to on-chain data.
Despite this accumulation by whales, the token has not experienced a significant price boost. Instead, crucial technical indicators suggest a potential decrease in price in the short term.
Ripple Whales Gather For One Purpose
Over the last three months, there has been a 2% rise in the quantity of whale addresses that possess more than one million XRP tokens. This cohort of XRP holders includes 2010 addresses as of this writing. As a matter of fact, the total reached a record high of 2027 on May 19.
It’s possible that these XRP holders have packed their bags as a result of the altcoin’s recent profitable transactions. A value of 1.14 was obtained from an analysis of XRP’s daily transaction volume profit to loss ratio.
This indicates that 1.14 out of every XRP transaction made during the review period that resulted in a loss was profitable. This implies that there have been more successful deals than the ones in which holders have incurred losses.
Price Prediction for XRP: The Bears Are Trying to Stop a Price Rally
Even with the recent profitability of XRP transactions and the increase in whale activity, traders are still largely pessimistic. This information was taken from its Elder-Ray Index, which has been negative at the end of each week since April 8.
This indicator gauges the market’s pressure to buy and sell. It shows that bear power is stronger than bull strength when its value is negative. It implies that sellers influence prices more than buyers do.
This downward trend was validated by XRP’s Moving Average Convergence/Divergence (MACD) indicator. Below the orange signal and zero lines, the blue MACD line of the signal has crossed.
This crossover indicates a downward trend. It usually indicates that the short-term trend of an asset is declining and diverging from the longer-term trend. Traders perceive it as a signal to abandon the market or refrain from making long transactions since it implies a decrease in the accumulation pressure.
May 2024, Cryptoniteuae
