Ripple (XRP) price retreated by 10% to hit $0.65 after reaching a three-month high of $0.72 last week. On-chain data reveals that crypto whales have started making strategic moves to disrupt the ongoing XRP price consolidation phase.
XRP price hangs in the balance, as the crypto market retreated from last week’s overheated trading activity. As bullish whales begin strategic moves, XRP could be on the verge of another price breakout.
Crypto Whales Spotted Buying 90 Million XRP in 48 Hours
XRP price action has been flat over the last few days, and mega-cap cryptos retreated from last week’s euphoric highs. But as the price retreated to the key support territory at $0.65, on-chain data reveals that a group of strategic whale investors swooped in to buy up a large amount of XRP.
According to the Santimentchart below, whales (wallets holding 1 million to 100 million XRP) had only 8.93 billion coins in their cumulative balances at the close of Sunday, Nov. 12. But that figure has rapidly increased to 9.02 billion as of Nov. 14.
This shows that the whales have strategically acquired 90 million XRP coins within the last 48 hours.
Ripple (XRP) Whales Wallet Balance | Source: Santiment
The whales wallet balance metric tracks real-time changes in the number of coins in custody of large institutional investors. Valued at the current price of $0.66, the newly-acquired 90 million XRP are worth approximately $60 million.
Such a large increase in whales’ buying activity indicates that they are positioning for another price breakout, after rebounding from the $0.65 area. If the whales continue to buy, XRP price could retest the $0.70 area in the coming days.
Read More: Best Crypto Sign-Up Bonuses in 2023
Market Has Shifted From Overheated Zone
XRP price skyrocketed to a three-month peak of $0.72 as markets overheated. XRP markets had jumped amid euphoria from new listings on Upbit exchange and a streak of legal victories over the Securities and Exchange Commission (SEC).
However, after a week of consolidation, the Relative Strength Index (RSI) data shows that XRP has moved from overbought conditions to neutral territory.
As XRP price rose to $72 last week, the chart below illustrates that XRP RSI skyrocketed to 87.93 on Nov. 6. Notably this was the highest since a US court declared XRP “not a security”, back in July.
However, after a week of consolidation where XRP bears forced a pull-back to $0.65, the XRP RSI trend line has now dropped to the neutral zone at 61.96.
Ripple (XRP) Relative Strength Index data | Source: CryptoWaves
The Relative Strength Index data assesses the strength and momentum of an asset’s current price trend. When the RSI moves below the 70 level, it suggests the asset has now shifted from euphoric overbought territory into a consolidation phase.
Strategic investors looking to avoid buying at the top may interpret this as a good point to enter the market.
Read more: How To Buy XRP and Everything You Need To Know
XRP Price Prediction:
Having defended the $0.65 territory, the $60 million whale inflows recorded in the last 48 hours puts XRP price on an upward trajectory. The Parabolic SAR (Stop and Reverse) technical analysis indicator also supports the bullish price prediction.
The Parabolic SAR identifies critical reversal points in an ongoing price trend. When it points below the current price of an asset, it indicates a bullish momentum and vice versa. Currently, the indicator dots point toward $0.65, which is well below the current price. This alignment is a clear indication of a growing bullish trend.
If the bulls seize control as predicted, XRP price will face initial resistance at the previous local high of $0.72. A decisive breakout of that resistance could see XRP reclaim $0.80.
Ripple (XRP) Price Prediction | Source: TradingView
On the downside, the bears could negate that prediction if they successfully force a downswing below $0.55. However, the support buy wall around the $0.65 area will likely prove daunting.
Read more: Top 9 Telegram Channels for Crypto Signals in 2023
Read the full article here