Ripple whales would be responsible for XRP’s next bull run and this is why
Sharing a statistically significant positive correlation with Bitcoin [BTC], Ripple’s XRP price was affected by the price drop suffered by the king’s coin over the past seven days. Trading hands at $ 0.3422 at press time, the price for XRP was down 12% over that period. So far this month, the token has fallen by 14%. This comes after the price of XRP rose more than 15% in July.
XRP in the past 24 hours
Impacted by the series of liquidations that hit the cryptocurrency market, XRP has suffered $ 1,586,572 in liquidations in the past 24 hours. The drop in the token price has led to a drop in trading volume. With a value of 1.32 billion at press time, XRP’s trading volume has decreased by 19% in the past 24 hours.
On a daily chart, XRP has been trading in a tight range since July 31st. The publication of a double-digit decline during the intraday trading session on August 19th broke the narrow range into a downtrend. With XRP’s buildup declining over the past few days, its Relative Strength Index (RSI) breached the neutral 50 region in a downtrend to be pegged at 38 as of this writing. Also indicating increased selling pressure, the token’s Money Flow Index (MFI) was 39 at press time.
A 20-day fairytale
On-chain data revealed a decline in the token’s network activity since the beginning of August. The index of active addresses transacting daily XRP tokens has dropped by 31% in the past 20 days. Additionally, the rate at which new addresses have entered the network since the beginning of the month has slowed. At the time of writing, this figure has dropped by 17%.
However, regardless of the decline in network activity over the past few days, XRP experienced significant whale activity ahead of close of trading hours on August 19. According to data from Sanctity, the token recorded 452 whale transactions of $ 100,000 and above, the highest tally since May. Additionally, the token’s weighted sentiment, at 1.013 at the time of this writing, was at its highest level since April.
It is worth noting that over the past six months, whale addresses holding between 10,000 and 10,000,000 XRP tokens have gradually increased their XRP holdings. Nonetheless, the price has been falling since November 2021 and is currently trading at the February 2021 level.