While Ripple [XRP] has not seen significant price movements lately, the overall market sentiment towards the digital asset remains positive.
Cautious Optimism Surrounds Ripple as Momentum Remains Limited
An assessment of Ripple’s price chart indicates a neutral to mildly bullish trend. Currently priced at $0.5853, XRP has shown a minor uptick of 0.12%, suggesting a consolidation phase with a slight bullish inclination.
Technical indicators like the Moving Averages and the Relative Strength Index (RSI) lend support to this analysis.
The recent Golden Cross formation, where the 50-day moving average (yellow) crossed above the 200-day moving average (blue), typically signifies a shift towards positive medium-term trends.
Despite this, XRP’s price movement displays a sideways pattern, hovering around the $0.58 mark. The RSI sits at 55.98, indicating a neutral momentum slightly favoring the bullish side but still distant from the overbought territory.
For a more significant bullish breakout, XRP needs to surpass recent peaks near $0.60, while maintaining key support levels near the moving averages around $0.55.
The current market stance seems cautious, yet the accumulation by large investors suggests otherwise.
Significant Increase in Ripple Accumulation by Large Investors
Between May and early August 2024, the number of prominent XRP holders saw minimal fluctuations, indicating limited accumulation or selling actions.
However, early August witnessed a notable uptick in the number of large holders, indicative of a sudden surge in accumulation by major investors.
Moreover, in the last ten days, whales have acquired over 380 million XRP, worth approximately $228 million. This uptick in accumulation hints at growing confidence or strategic positioning by these investors in anticipation of more favorable market conditions.
Following this surge, the count of substantial wallets has stabilized at higher levels, suggesting a decrease in selling pressure.
Grayscale Boosts Positive Sentiment around XRP
Adding to the positive outlook, a recent report from Grayscale revealed that Ripple delivered the highest weekly returns among the top 10 crypto assets.
With a 9% return, XRP outperformed Avalanche, which came in second with an 8.4% increase. This strong showing has further enhanced the market’s confidence in Ripple despite its struggle to gain substantial momentum.