The recent decline in the price of Ripple (XRP) has attracted the attention of large investors, with on-chain data showing whales accumulating large amounts.
Combined with a neutral MVRV ratio and stability at key support levels, these developments suggest the potential for a reversal of the upward price trend for this token.
The whale wallet distribution chart shows that the XRP balances of large holders have been steadily increasing. Analysis of wallets holding between 1 million and 100 million XRP has recorded accumulation.
This accumulation phase is strengthening as the price of XRP faces downward pressure, reflecting the classic "buy the dip" strategy from large investors.
Traditionally, the accumulation of assets by whales during a market downturn is often a precursor to a price recovery. These large investors tend to build long-term strategies, anticipating a strong reversal and significant price increases in the near future.
The current trend highlights the growing confidence in the medium-to-long-term recovery potential of XRP.
The price of XRP has found strong support at the $2.32 level and the 50-day moving average (MA) at $1.59, as shown in the chart below.
Although struggling to break through the $2.46 Fibonacci Retracement Level, the ability of the token to maintain its position above the key MAs reflects an underlying bullish sentiment.
Trading volume remains strong, indicating continued market interest. Whale accumulation combined with reduced selling pressure helps the price of XRP strengthen its ability to navigate past current resistance levels, paving the way for potential recovery.
According to Santiment data, the 30-day MVRV ratio chart shows a significant decline to around 5.91%. These figures signal a decrease in profit-taking activity from holders who purchased the token in the past month.
A neutral or low MVRV ratio reduces the risk of short-term selling, aligning with the ongoing accumulation phase of the whales.
Decreased profit-taking, increased whale activity, and stability at key support levels suggest a cautiously optimistic outlook for XRP.
While the resistance level around $2.46 remains, these indicators collectively signal the potential for price recovery in the coming weeks.
The current market dynamics of XRP, driven by whale accumulation and reduced selling pressure, provide a solid foundation for potential recovery.
As the token stabilizes at critical levels, the market's focus shifts to whether XRP can break through the resistance and extend its upward momentum. The next few trading sessions may reveal whether the recovery potential of XRP will translate into a sustainable price breakout.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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Minh Anh
According to AMBCrypto
