Ripple (XRP) price has been struggling to break through the $0.50 resistance level, despite the overall recovery of the crypto market over the weekend. An analysis of XRP price indicates that the next rally could establish a slightly higher support level.

On June 13, the XRP price reached its peak for 2023 at $0.56. On-chain data suggests that the rally was primarily driven by speculation surrounding the SEC lawsuits against major exchanges and altcoins.

However, the weak network fundamentals resulted in a 20% price crash to $0.45 by June 16. Since then, the XRP Ledger network has seen a steady improvement in its underlying network traction.

Will the ongoing accumulation by whales lead to a more sustainable XRP price rally?

Price-Savvy Whales Are Buying

On-chain data reveals that a group of price-savvy XRP whales, who hold 10 million to 100 million XRP coins, are currently on a buying spree.

The chart below from Santiment illustrates that they purchased 90 million coins over the weekend.

At the current XRP market price of $0.48, the whales’ new investment is worth approximately $43.2 million. When big investors like whales make significant investments within a short period, it often indicates an impending price increase.

Historically, this particular group of whales has shown a good track record in timing their trades, with their buy/sell trends closely correlating with XRP price cycles.

If this past pattern repeats itself, XRP holders can anticipate significant price gains in the coming weeks.

XRP Network Value is Improving

During the recent rally, XRP price continued to rise without a corresponding increase in Daily Active Addresses, which is a crucial measure of the underlying network traction and demand.

However, this week has seen a steady improvement in XRP’s underlying network value. Between June 14 and June 19, XRP’s Daily Active Addresses (DAA 7d) nearly doubled from 104,250 to 193,700. This represents an 85% growth in network demand in less than a week.

In simpler terms, Daily Active Addresses (7d) represents the number of unique addresses conducting transactions over a seven-day period. When there is an increase in Daily Active Addresses during a price correction, it is considered a positive divergence.

The above chart indicates that despite the recent price decline, XRP is attracting significant network demand. This usually suggests an impending and more organic price rebound rather than one driven solely by speculation.

In conclusion, the next XRP rally is likely to establish a higher support level as the network value strengthens.

XRP Price Prediction: The Bullish Whales Could Target $0.60

Considering the growth in XRP’s underlying network demand, the optimistic whales could aim for a price target of $0.60 this time.

With the current price at $0.48, the MVRV ratio indicates that most crypto investors who bought XRP within the last 30 days still have a 3% loss. Based on historical trends, these investors are likely to hold their positions until they break even before selling around $0.50.

If the bullish whales can push the price above that resistance level, XRP price could move closer to a new 2023 peak of $0.60.

However, if XRP unexpectedly drops below $0.45, the bearish scenario could invalidate the bullish price analysis. Nevertheless, a significant number of investors are likely to provide support at that level to avoid a 5% loss position.

Otherwise, XRP could decline further toward the next major support level at $0.40.