Ripple’s native token, XRP, has showcased a remarkable degree of stability over the past month, trading within a narrow price range. Despite experiencing a temporary dip below its horizontal channel during the market downturn on August 5, XRP has managed to recover and continue its sideways movement.
Ripple Holders See Gains Amidst Market Calm
The stability of XRP is not just a reflection of its price pattern but also of its trading profitability. Recent data reveals that the daily ratio of XRP’s transaction volume in profit to loss, as assessed using a 30-day moving average, is currently 1.2. This implies that for every XRP transaction ending in a loss, 1.2 transactions are ending in profit. This positive ratio highlights a resilient trading behavior, even in a relatively flat market.
Additionally, XRP whales have been increasing their trading activity. Santiment’s data indicates a notable rise in the number of whale addresses holding between 1,000,000 and 10,000,000 XRP tokens. As of the latest update, there are 1,617 such addresses—a 2% increase since August 9. This uptick in whale activity is often seen as a bullish signal, suggesting growing demand and potentially boosting retail traders’ confidence. This could lead to more buying activity, which might spark a rally in XRP’s price.
XRP Price Prediction – Challenges Ahead
Currently trading at $0.57, XRP has been moving within a horizontal channel since July 17. This channel represents a balance between buying and selling pressures, with the upper boundary acting as resistance and the lower boundary serving as support. XRP has struggled with resistance at $0.63 and has found support at $0.54.
However, the current market sentiment suggests a bearish bias. Selling pressure seems to be outpacing buying activity, as evidenced by the declining Chaikin Money Flow (CMF) for XRP, which stands at -0.08. The CMF indicator, which measures the flow of money into and out of an asset, reflects market weakness with its negative value. If this trend persists, XRP’s price could test the support level of its horizontal channel and potentially drop to $0.50.
Conversely, should the bulls manage to regain control, XRP might rally towards the resistance level and attempt to break through. A successful breach of resistance could see XRP trading at $0.66.
As XRP continues to navigate its trading channel, the actions of its whales and overall market sentiment will be crucial in determining its next move. Traders and investors will be closely watching to see if XRP can break free from its current constraints or if it will face further downward pressure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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