Despite negative sentiment in the crypto industry impacting the altcoin markets, Ripple (XRP) has managed to maintain a month-on-month gain of 15%. The ongoing price rally has been significantly influenced by crypto whales investing in XRP. The question now is will XRP’s upward momentum continue enough to break through the resistance at $0.60?
Institutional investors appear to be shifting their capital toward the top 20 ranking cryptocurrencies as the US SEC has been cracking down on Coinbase and Binance.
Here is an analysis of the on-chain data on XRP that shows it could enter a bull rally amidst the current turbulence in the broader crypto markets.
New Users Flocking to the XRP Ledger Network
While other altcoins have encountered a contraction, strategic crypto investors have been amassing on the XRP ledger network in recent weeks.
The Ripple blockchain network observed an increase in growth from May 14, whereby 865 new wallet addresses were created, to the close of June 6, resulting in more than triple the figure to reach 2,430 new addresses.
Network growth tracks the number of daily new wallet addresses created on a blockchain network. When it increases during an industry-wide contraction, it indicates that the project is gaining market share from its competitors.
The observed spike in network growth has played a crucial role in the ongoing XRP price rally, and its continuation could break the critical resistance at $0.60.
Crypto Whales Turn Bullish on XRP
Ripple’s (XRP) price climbed to $0.54 before the industry-wide retracement on Monday, marking its first time reaching this price since March. XRP emerged as one of the best-performing altcoins in the top 20 crypto market rankings over the last 30 days.
On-chain data indicates that crypto whales, who have been stacking their XRP bags, are a key player in the ongoing price rally.
From May 30 to June 6, XRP whales holding one million to 10 million coins increased their holdings, adding 100 million coins worth nearly $53 million within the last seven trading days only.
Whale wallet balances provide a real-time snapshot of the trading activities of different clusters of large institutional investors. This week, crypto whales have doubled down on their XRP bullish positions, a positive reaction to the SEC’s decision to exclude Ripple-issued coins from its list of cryptocurrencies labeled as securities in its lawsuit against Binance.
If the whales continue to demonstrate their confidence, XRP holders can hope for more price gains in the coming weeks.
XRP Price Prediction: Can the Bulls Push for $0.60?
Though XRP has made numerous unsuccessful attempts to break above $0.55 this year, the bulls may finally garner enough momentum to attain a new 2023 peak above $0.60.
According to Santiment’s Market-Value to Realized-Value (MVRV) data, most crypto investors that bought XRP within the past month are sitting on unrealized profits of around 7%. The historical trading pattern shows they will likely hold out for an additional 5% gain before selling around $0.56.
If the price can break beyond $0.56, it may rise by another 13% toward the $0.63 zone before facing the next significant resistance level.
On the other hand, the bears may flip the narrative if the XRP price drops below $0.50. However, most investors are likely to provide bullish support at this level to avoid slipping into a net-loss position. Otherwise, the price could decline to the next major support level at $0.45.
Disclaimer
Bitrabo upholds accurate and impartial reporting, but market conditions are vulnerable to change without warning. As a result, this price evaluation article is for educational reasons only and should not be taken as financial advice. Prior to making any financial choices, always conduct your own research and seek the advice of a professional.
