Ripple (XRP) price has struggled to clear the $0.50 resistance level despite the crypto market resurgence over the weekend. An in-depth XRP price analysis suggests that the next price rally could see the bulls establish a slightly-higher support level.
On Tuesday, June 13, XRP price reached a 2023 peak of $0.56. On-chain data showed that the rally was largely driven by speculations surrounding the SEC lawsuits that targeted major exchanges and altcoins.
Remarkably, the relatively weak network fundamentals soon triggered a sharp 20% price crash toward $0.45 by June 16. However, the XRP Ledger network has since witnessed a steady improvement in its underlying network traction.
Will the ongoing whale accumulation build up a more sustainable XRP price rally?
Price-Savvy Whales Are Buying
On-chain data shows that a group of price-savvy XRP whales holding 10 million to 100 million XRP coins are currently on a buying spree.
The Santiment chart below illustrates that they bought 90 million coins over the weekend.
At the current XRP market price of $0.48, the whales’ new investment is worth roughly $43.2 million. When whale investors invest such large amounts within a short period, they are positioned for an imminent price gain.
Historically, this particular cohort has a remarkable record of timing their trades. Their previous buy/sell trends have been closely correlated to XRP price cycles.
If this pattern repeats, XRP holders can expect significant price gains over the coming weeks.
XRP Network Value is Improving
During last week’s rally, XRP price kept rising without a corresponding increase in Daily Active Addresses —a critical measure of fundamental network traction and demand.
However, XRP has steadily improved underlying network value this week. Between June 14 and June 19, XRP Daily Active Addresses (DAA 7d) nearly doubled from 104,250 to 193,700. This represents an 85% growth in network demand in less than one week.
In simple terms, the Daily Active Addresses (7d) sums up the number of unique addresses carrying out transactions over a seven-day period. When Daily Active Addresses increases during a price correction, it is called a positive divergence.
The chart above shows that XRP is attracting significant network demand in spite of the recent price decline. This typically indicates an imminent and more organic price rebound than a speculation-driven one.
In conclusion, the next XRP rally price will likely establish a higher support level as the network value strengthens.
XRP Price Prediction: The Bullish Whales Could Target $0.60
Considering the growth in XRP underlying network demand, the bullish whales could target $0.60 this time.
With prices currently sitting at $0.48, the MVRV ratio shows that most crypto investors that bought XRP within the last 30 days still hold 3% losses.
Considering the historical trends, investors are likely to hold until they break even before they start selling around $0.50. If the bullish whales can push past that resistance, XRP price could edge closer toward a new 2023 peak of $0.60.
Conversely, the bears could invalidate the optimistic price analysis if XRP unexpectedly drops below $0.45. Nevertheless, a large number of investors will likely offer bullish support at that zone to avoid slipping into a 5% loss position.
Otherwise, XRP could sink further toward the next significant support level at $0.40.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Source: https://beincrypto.com/xrp-price-analysis-could-reach-0-60/