Ripple (XRP) Price Prediction: Can this $42M Signal Turn the Tide?

Ibrahim Ajibade
Updated: Mar 17, 2024, 21:59 GMT+00:00

Key Points:

  • Ripple (XRP) price declined toward $0.60 March 16, marking an underwhelming end to the week that had began with a blistering 20% rally to a 2024 $0.74 on Monday.
  • XRP swing traders have now reduced their selling pressure by $42 million according to the latest data pulled from blockchain analytics platform, Santiment.
  • XRP bulls are currently in a fierce battle to reclaim the $0.63 20-day SMA.
Ripple XRP Price 2024

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Ripple (XRP) price declined toward $0.60 on Saturday, March 16, marking an underwhelming end to a week that began with a blistering 19% rally to a 2024 peak $0.74 on Monday.  On-chain data trends show that profit-taking wave among long-term holders has now cooled off.

With XRP now edging closer to reclaiming its 20-day average price, will bullish swing traders consider it perfect timing to re-enter the markets in the week ahead?

XRP long-term investors have tuned down the Selling pressure

Last week, XRP price made a strong start as it outperformed every asset in the top 5 crypto market rankings with a 19% growth on Monday, March 11, 2024. With prices trending at a yearly peak, many long-term investors, almost instantly, entered a profit-taking spree.

Santiment Dormant supply in Circulation (180d) chart below, tracks the total number of coins traded within a single day, that had stayed unmoved in their previous wallets for 180 days or more.

An increase in the Dormant supply in Circulation means that a large number of long-held coin have recently been offloaded, and vice versa.

The red trendline in the chart shows how the long-term investors began booking profits just after price soared above $0.74 on March 11.

Ripple (XRP) Dormant Circulation Supply vs. Price | Source: Santiment
Ripple (XRP) Dormant Circulation Supply vs. Price | Source: Santiment

As seen above, over 65.4 million XRP coins that had been previously held Dormant  for more than 180 days (6-months), were rapidly traded on March 11. The spike in selling pressure instantly sent XRP price spiraling downward throughout the rest of the week.

At the time of writing on March 17, XRP price is hovering just above the $0.62 mark, 19% lower than that 2024 peak recorded on March 11.

But, on the bright side, heading into the upcoming week, XRP long-term traders have now reduced their selling pressure significantly.

As of March 17, the Dormant supply in circulation stands at 8.56 million. This represents, a reduction of 56.4 million XRP, worth approximately $42 million , compared to the peak of long-term investors’ selling frenzy last week.

When selling pressure on an asset in decline drops by such a significant margin, it is a prime indicator that the market has now reached a trend reversal point.

In effect, strategic traders could consider this a signal that is a good time to re-enter the market or hedge their short positions. This scenario could put XRP price on the path to another positive start to the coming week.

XRP Price Prediction: Reclaiming $0.63 Could Flip the Momentum

Drawing insights from the $42 million decline in long-term holders’ selling pressure, XRP price now appears poised for a bullish rebound toward $0.70 in the coming week.

However, in the short-term XRP face major challenge breaking above the 20-day SMA price mark at $0.63.

But if the bulls can establish a steady support base above that vital $0.63 resistance level, a decisive breakout toward $0.70 could be on the cards as predicted.

Ripple (XRP) price prediction | Source: TradingView
Ripple (XRP) price prediction | Source: TradingView

But if the bearish sell-wall at $0.63 remains in place, XRP price could succumb to a major downswing toward $0.50.

But this currently appears farfetched considering the cooling selling pressure, and the massive support buy-wall at $0.55 as highlighted by the lower-limit of the Bollinger band technical indicator.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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