XRP Whales Increasing Accumulation Around 05 Signaling Possible Imminent Breakout
XRP has been hovering around the $0.5 mark in recent weeks as investors eagerly await a possible surge in its price. Interestingly, despite the lack of movement in XRP’s value, new on-chain data reveals that large investors, known as whales, have been accumulating the token, hinting at a potential uptrend. Specifically, addresses holding at least 100 million coins have been increasing their XRP holdings during the market dip in the first ten days of June.
Further supporting this observation is the Mean Dollar Invested Age (MDIA) metric, which sheds light on investor behavior. As of June 1, the 90-day MDIA for XRP was at 1,812, indicating that investors are choosing to hold onto their XRP rather than actively trade it.
Looking ahead at XRP’s price movement, crypto analyst Dark Defender suggests that the token may be gearing up for a rally. In a recent post on June 12, the analyst pointed out a familiar pattern from 2017 in XRP’s price action. With XRP currently above a critical support level on the weekly timeframe, historical data suggests that the token has shown resilience in turbulent markets.
Moreover, indicators hint at a potential reversal, with sentiment nearing oversold territory. Crossing above $0.6640 and breaking the $1 resistance level are seen as crucial milestones that could signal a sustained uptrend for XRP.
On the technical side, the stochastic oscillator is approaching oversold levels, indicating a potential upward movement if past patterns repeat. Maintaining the support line could lead to a bounce towards the upper trendline, potentially targeting the $0.70 to $1.00 range in the coming months.
While XRP has not mirrored the movements of Bitcoin, the cryptocurrency has solid fundamentals that could drive a breakout. A favorable outcome in Ripple’s ongoing legal battle with the SEC could serve as a catalyst for XRP’s rally. Additionally, Ripple’s expanding network of partnerships with financial institutions globally adds credibility to the project, with anticipation building around the launch of a stablecoin pegged to the US dollar.
At the time of writing, XRP was trading at $0.49, showing a 2% increase in the last 24 hours. In the short term, XRP seems to be consolidating between the $0.47 support and $0.50 resistance levels. A breakout above $0.50 could signal a move towards the $0.52 resistance, while a breakdown below $0.47 could lead to further declines, with support levels around $0.45 or lower.
Disclaimer: The information provided in this article should not be taken as investment advice. Investing in cryptocurrencies carries risks, and investors should be cautious with their capital.
