XRP Whales Refuse to Sell, Will the Token’s Price Ignore the Market Downturn and Head to $0.45?

Even though the market has been in a discouraging state, Ripple [XRP] whales have decided not to fan the flames. Instead, they are opting to buy more

Despite the market downturn, XRP whales are accumulating more tokens.

According to data from Santiment, the balance of XRP addresses holding more than 1 billion tokens stood at 39.81% in mid-June. At the time of writing, that ratio had increased to 41.46%.

Whales are entities who hold large volumes of a cryptocurrency. Hence, their actions have a significant influence on prices. When big players accumulate, it can help stabilize prices from the downturn. In some cases, it leads to a rebound.

As of press time, XRP was trading at $0.43, which marked a 6.52% decrease in the last 24 hours. But with the recent whale action, the value might stabilize around the mentioned price, or possibly head toward $0.45.

However, it is important to note that whale accumulation alone would not stop the price from falling. As a result, we, at AMBCrypto, took it upon ourselves to assess other happenings on-chain.

One of the metrics we looked at was the dormant circulation. This metric tracks how quickly tokens, which have been held for a long time, are used in transactions activity.

When dormant circulation increases, it means that old tokens are moving from self-custody to active trading. If this happens, it means that holders of the token are ready to sell.

XRP price aims to climb above resistance

Consequently, this leads to a price decrease. However, the opposite happens when dormant circulation is low, which was the case at press time.

On the 1st of July, XRP’s 90-day dormant circulation jumped. But at press time, it was down to 14.35 million. This decline means that long-term holders of the token have refrained from moving their assets out of cold wallets.

If sustained, XRP could avoid another plunge as earlier mentioned.

Furthermore, we analyzed XRP’s potential from a technical perspective. According to the daily chart, the Relative Strength Index (RSI) was 23.96.

The RSI measures momentum using the magnitude of price changes. When the reading is above 70, it means an asset is overbought. However, when it is below, it indicates an oversold condition.

Hence, XRP was oversold, indicating that the price could be on the brink of a rebound. To check the possible targets, AMBCrypto looked at the Fibonacci retracement indicator, which spots potential support and resistance levels.

Read Ripple’s [XRP] Price Prediction 2024-2025

From the chart above, if XRP bounces off the lows, the price could key into the 23.6% Fib level, which was positioned at $0.45.

However, this prediction could be invalidated if selling pressure increases and whales also join in.🎜

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