The cryptocurrency news website reported that XRP whales have not participated in a broader market sell-off. Long-term holders have also refrained from selling, suggesting a potential price rebound for the token.
Despite the market’s ongoing discouraging conditions, Ripple’s XRP whales have chosen not to stir up trouble. Instead, they have opted to acquire more tokens. According to Santiment’s data, in mid-June, the address balance of XRP holders with over 1 billion tokens was around 39.81%. However, by the time of writing, this proportion has risen to 41.46%.
A Way Out Provided by Major Players
For the group ranging from 1 million to 10 individuals, the balance has increased from 6.08% to 6.20%. Whales are entities that hold significant amounts of cryptocurrencies; thus, their actions have a significant impact on prices.
As accumulation occurs recently, prices stabilize from the slump. In some cases, they even bounce back. At the time of writing this article, XRP is priced at $0.43. This number has decreased by 6.52% in the last 24 hours. However, with recent whale activity, the price might stabilize around the aforementioned level or possibly near $0.45.
However, it is essential to note that accumulation by whales alone cannot prevent price declines. Therefore, we at AMBCrypto are evaluating other events happening on-chain independently.
One metric we study is the dormant circulation. This metric tracks the speed at which long-term holders of tokens are engaging in trading activities. An increase in dormant circulation implies that old tokens are transitioning from self-custody to active trading. If this happens, it indicates that token holders are ready to sell.
XRP Price Set to Break Resistance
Consequently, this leads to price declines. However, when the dormant circulation is low, the situation is the opposite, as it is at the time of writing. On July 1st, the 90-day dormant circulation for XRP spiked.
But by the time of writing, this number has decreased to 14.35 million. This decrease indicates that the token’s long-term holders have not moved their assets out of cold wallets.
If this trend continues, XRP may avoid the mentioned sharp declines.
Additionally, we have analyzed XRP’s potential from a technical perspective. According to the daily chart, the Relative Strength Index (RSI) stands at 23.96. RSI measures momentum using the magnitude of price changes.
When the index is above 70, it signals an overbought asset. Conversely, when it is below, it indicates an oversold state. Therefore, XRP is oversold, suggesting that the price may be on the verge of a rebound. To check potential targets, AMBCrypto has looked at the Fibonacci retracement indicator, which identifies potential support and resistance levels.
Reading Ripple’s XRP Price Forecast 2024-2025
From the chart, if XRP rebounds from the low point, the price may enter the 23.6% Fibonacci level, which is at $0.45.
However, if selling pressure increases and whales also join in, this forecast may become invalid.