The recent drop in Ripple’s (XRP) price has drawn the interest of large investors, evident from on-chain data showing significant accumulation by whales.
With a stable MVRV ratio and consolidation at crucial support levels, there are indications of a potential bullish turnaround for the token.
Whales Ramp Up Ripple Accumulation
Data from the Whale Holdings Distribution chart highlights a consistent rise in large holders’ XRP balances. An analysis of wallets containing 1 million to 100 million XRP reveals a surge in accumulation.
This accumulation trend intensified as XRP’s price faced downward pressure, signaling a classic strategy of “buying the dip” among major investors.
In the past, whale accumulation during market declines has often foreshadowed upcoming price rebounds. These large holders strategically position themselves in anticipation of significant bullish reversals.
The ongoing trend underscores a growing confidence in XRP’s potential for medium-to-long-term recovery.
Stability at Key Support Levels
Ripple’s price has found robust support at $2.32, reinforced by the 50-day Moving Average at $1.59, as depicted in the XRP Price chart.
While facing resistance at the $2.46 Fibonacci retracement level, XRP’s ability to hold above key moving averages reflects an underlying bullish sentiment.
The trading volume remains healthy, indicating sustained market interest. The combination of whale accumulation and decreased selling pressure strengthens XRP’s resilience against current resistance levels, potentially setting the stage for a rebound.
MVRV Ratio Signifies Ebbing Sell Pressure
According to Santiment, the 30-day MVRV Ratio chart shows a notable decrease to around 5.91%, signaling reduced profit-taking by Ripple holders who acquired the token within the last month.
A neutral or low MVRV ratio diminishes short-term selling prospects, aligning with the ongoing phase of whale accumulation.
The convergence of decreased profit-taking, heightened whale activity, and stability above critical support levels paints a cautiously positive picture for XRP.
While resistance persists near $2.46, these factors collectively hint at a possible price recovery in the weeks ahead.
The current market dynamics of XRP, characterized by whale accumulation and dwindling selling pressure, lay a strong groundwork for a potential resurgence.
As the token steadies at pivotal levels, attention shifts to whether it can overcome resistance and extend its upward trajectory. The upcoming trading sessions are likely to clarify if XRP’s resilience translates into a continuous bullish breakout.