XRP Whales Accumulate Near Support That Preceded Sharp 30-100% Price Rebounds

Yashu Gola
Published: Jun 14, 2024, 12:29 GMT+00:00

Key Points:

  • XRP whales have increased their holdings by over 1.50% since June 11, while the price declined by 4.50%, signaling a "buy the dip" strategy.
  • XRP is trading near a crucial support range of $0.455-$0.475, which has historically triggered price rebounds of 30% to 100%.
  • XRP could see a bullish reversal towards $0.50 in June, but a break below $0.44 risks a drop to $0.30 in the third quarter.
XRP whales, FX Empire

In this article:

XRP (XRP) whales have started accumulating the tokens in recent days, right when the price is hovering around a range that has historically preceded rebounds of 30% to 100%. This trend, underscored by recent on-chain data and technical analysis, strongly suggests a potentially bullish outlook for XRP in the coming weeks. Read until the end to know the entire XRP market setup.

XRP Holdings Rise Among Its Richest Investors

The XRP supply held by its richest investors—whales that hold at least 1 billion native tokens—has increased by over 1.50% since June 11. Meanwhile, the cryptocurrency’s price has declined by circa 4.50% in the same period, indicating that most whales are buying the dip.

When whales buy the dip, the crypto market typically interprets it as a sign of their confidence in the asset. In turn, this sentiment can result in more retail investors following suit, further driving up the price.

XRP supply distribution among whales. Source: Santiment

The growing accumulation sentiment becomes more evident when one brings attention to the declining XRP supply held by the 100 million—1 billion cohort. In other words, this balance cohort is increasing its holdings to the point that it ends up entering the 1 billion XRP—infinity balance group.

Conversely, the 10 million—100 million XRP balance cohort is witnessing a dip in its supply, coinciding with an increase in the holdings of the 1 million—10 million XRP balance cohort. These indicate distribution sentiment among the mid-sized investor base.

XRP Technicals Hint At Sharp Rebound in June

The XRP accumulation sentiment among its largest whale cohort is occurring when its price treads around a key support range of $0.455-0.475.

This range, marked in red in the chart below, has limited XRP’s downside attempts multiple times since May 2023, triggering 30-100% price rebounds in some cases. For instance, XRP’s price last tested the $0.455-0.475 range as support in April, which followed a 35% price rebound.

XRP/USD daily price performance chart. Source: TradingView

If the fractal holds, XRP’s price can undergo a sharp bullish reversal in the coming weeks. In June, it is eyeing a resistance confluence at around $0.50—up about 10% from the current price levels. This confluence comprises XRP’s 50-day exponential moving average (50-day EMA; the red wave) and the 0.236 Fibonacci retracement line.

Read More: XRP News Today: Ripple Cites SEC Inconsistency in Latest Legal Filing

On the flip side, XRP is breaking below its multi-year ascending trendline support on the weekly chart, as shown below.

XRP/USD weekly price chart. Source: TradingView

A further selloff followed by a decisive close below the 0.786 Fib line at around $0.44 risks crashing XRP toward $0.30 during the third quarter, down 35% from the current price levels.

About the Author

Yashu Gola is a journalist focusing on cryptocurrency markets since 2014. He writes for Cointelegraph and CoinChapter and has previously served as the chief editor for NewsBTC.

Did you find this article useful?