XRP Price Prediction: Bounce Imminent as Whales Accumulate, Funding Rate Turns Positive

Earlier this month, Ripple's (XRP) price dropped by 18% within three days. Since October 3, however, the token has stabilized, trading between $0.52 and $0.55.

Ripple’s (XRP) price has remained stable over the past few days, following a 18% decline within three days earlier this month. The token’s price has been trading between $0.52 and $0.55 since October 3.

Now, on-chain metrics and technical analysis suggest that XRP’s price could bounce from the current support and might not drop to $0.50, as some traders predicted. Here's how.

Ripple Bulls Accumulate XRP, Boosting Its Value

Addresses with holdings between 100 million and 1 billion XRP now own 9.77 billion tokens, according to data from Santiment. As of October 17, these addresses held 9.63 billion XRP.

This shows that large market players have been accumulating the altcoin. On October 17, these addresses added 140 million XRP to their holdings, which is currently valued at around $77 million.

Usually, when large investors in the market accumulate tokens, it indicates their expectation for an increase in the token’s price.

On the other hand, a decrease in their holdings often suggests an impending price drop. In this case, given the recent accumulation, XRP’s price might rise above $0.55.

Another factor that supports this prediction is the Funding Rate, which could indicate traders' bullishness. The Funding Rate is the difference between the mark price of perpetual futures and the index price, which is the spot price of the underlying asset.

When the Funding Rate rises, longs are paying shorts, which signals that traders are generally bullish on the asset. A decrease in the rate indicates shorts paying longs, reflecting bearish sentiment.

For XRP, the Funding Rate is currently positive, which shows longs paying shorts. If this trend continues, the altcoin’s price could increase, leading to potential profits for traders holding long positions.

XRP Price Prediction: Bounce Imminent

On the daily chart, XRP’s price is pivoting between the $0.52 and $0.54 levels. However, a glance at the chart reveals that the $0.52 level is a strong support for the token.

This is because bulls have defended XRP’s price from dropping below this point several times over the last few weeks. Considering this strong support, it is highly unlikely that the altcoin will drop to $0.50 or lower.

Instead, the Fibonacci indicator, which is used to identify support and resistance levels, shows that XRP’s price might bounce from the current support.

With increasing buying pressure, the cryptocurrency’s value might hit $0.60. However, if XRP slips below $0.52 and bulls fail to defend the token, a drawdown to $0.49 could be next.

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