• XRP price could rally to $0.5930, a level that acted as support for the altcoin since November to January 2023.
  • Large wallet addresses holding between 10 million and 100 million XRP are buying the altcoin. 
  • A gradual decline in profit-taking by whales and a recovery in development activity suggest upside potential. 

XRP price declined by 8% in the past week, extending a downtrend that has been underway since November 13. However, on-chain metrics suggest that some of the drivers which led to recent price declines are slowing down, in a sign that the altcoin could be on a path towards recovery. 

XRP price is $0.5292 at the time of writing, the lowest level in almost three months. 

Also read: Ripple responds to SEC filing, argues the regulator is asking for irrelevant information

XRP on-chain metrics paint bullish picture

XRP’s on-chain metrics – such as whale transaction count, volume, market value to realized value, and network realized profit/loss support – a recovery in the altcoin’s price.

Whale transactions valued at $100,000 and higher have declined to 720 on January 22 from 1,332 on January 3. There is a decrease in whales shedding XRP at losses. While throughout January, large wallet investors have realized losses, the volume of these transactions has recently declined. 

XRP

Whale transaction count (>$100,000) and Network Realized Profit/Loss. Source: Santiment 

Another key on-chain metric, XRP distribution among market participants, shows bullish signs. In the last six months, XRP holders of between 10 million to 100 million tokens have consistently accumulated the asset during dips and distributed when the price hits a local peak. This typical behavior will likely repeat as whales accumulate XRP in the ongoing price dip. 

XRP

XRP distribution among whales. Source: Santiment 

Moreover, development activity in the altcoin hit a six-month low on 17 January, but increased afterwards. As development activity increases, there is a higher likelihood of a recovery in XRP price. 

XRP

XRP development activity. Source: Santiment 

XRP price looks at $0.5930

XRP price has been in a downtrend that started in November 2023.

On the upside, XRP price is likely to face resistance first at $0.5930, which aligns with the 38.2% Fibonacci retracement level of the decline between July 13 and August 17. Next resistances are at $0.6183 and at $0.6474. 

A rally from the current price of $0.5295 to the first resistance level would mark a 12% increase. 

XRP

XRP/USDT 1-day chart 

However, a daily candlestick close at $0.5007, the upper boundary of the imbalance zone, could invalidate the bullish thesis for recovery in XRP price. In the event of further decline, XRP price could find support at the upper boundary of the bullish imbalance zone at $0.5007. Further drop in XRP price could send the altcoin to its August 2023 low of $0.4210, as seen in the chart. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum ETF issuers file updated drafts, ETH staking still a possibility

Ethereum (ETH) is down 1% on Wednesday as issuers began filing their final spot ETH ETF S-1 drafts with the Securities & Exchange Commission (SEC) in anticipation of a launch on July 23. Meanwhile, SEC commissioner Hester Peirce also said the regulator may reconsider its position on ETH staking within the ETFs.

More Ethereum News

Could Vitalik Buterin's argument affect support for pro-crypto political candidates?

Could Vitalik Buterin's argument affect support for pro-crypto political candidates?

Vitalik Buterin released a post arguing that politicians who claim to be crypto-friendly now may not support it in the future. Buterin highlighted many key factors that crypto represents beyond trading tokens. Intentions of pro-crypto politicians are becoming the subject of debate following Buterin's post.

More Cryptocurrencies News

Dogecoin provides opportunity for investors to ride potential 40% rally

Dogecoin provides opportunity for investors to ride potential 40% rally

DOGE has maintained price patterns similar to BTC, ETH, and SOL. The popularity of other newer meme coins may be drawing attention away from DOGE. DOGE on-chain metrics and technical indicators suggest a rally may be on the horizon.

More Dogecoin News

AI tokens rally following Grayscale's Decentralized AI Fund launch

AI tokens rally following Grayscale's Decentralized AI Fund launch

Grayscale launched its Decentralized AI Fund on Wednesday, allowing investors to gain exposure to the price of AI-focused cryptocurrencies. Following the announcement, the general market cap of AI tokens rose by nearly 4%.

More Cryptocurrencies News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP