The Ripple (XRP) price shows signs of an upcoming consolidation phase as whales begin accumulating again, hinting at a potential surge after this period of stability. This outlook is bolstered by the rising daily active addresses since last week, indicating renewed interest, and the EMA lines confirming a strong consolidation path.
Such trends suggest that the market is preparing for a bullish turn, with the current phase setting the groundwork for future growth.
Whales Are Accumulating XRP Again
There has been a noticeable uptick in the number of addresses holding substantial quantities of XRP, specifically those with holdings ranging from 10 million to 100 million coins. This increase from 1,537 addresses on March 16 to 1,565 on March 28 is a significant rise that signals a gathering momentum among the so-called ‘whale’ investors. That is happening despite the SEC targeting Ripple Labs.
Traditionally, when such large-scale accumulations occur, it’s perceived as a bullish signal. The rationale is that these heavyweight investors are likely positioning themselves for an anticipated upward price movement, banking on their substantial holdings to pay off with a future surge in value.
Furthermore, it’s important to consider this recent whale activity in context: the weekly metric for addresses of this size had been in a consistent decline since the start of the year. The reversal of this trend in the last two weeks could be emblematic of a wider market sentiment shift.
It implies that confidence may be returning among these larger holders, and they are now engaging in a strategic build-up of their XRP reserves.
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Daily Active Addresses Are Also Rising
On March 9, XRP’s activity peaked with a significant spike to 47,930 daily active addresses. That immediately preceded a sharp price increase from $0.63 to $0.72 over the subsequent two days.
Following this rally, the daily active addresses plateaued. That mirrored the price of XRP as it entered a period of correction and settled at $0.61 by March 15.
However, a downward trend in the 7-day moving average of daily active addresses was observed from March 15 to March 23. During that time, XRP’s price oscillated narrowly between $0.59 and $0.62. That indicates a sideways market movement without a clear direction.
The period between March 22 and March 28 saw a revitalized interest in XRP, with daily active addresses rising from 27,351 to 30,858. Such a boost in network activity points to a growing investor engagement, possibly setting the stage for an upward price trend.
Active addresses tend to mirror market sentiment. An increase in these addresses often means more trading and larger transactions, pointing to a possible hike in XRP’s price as demand rises.
XRP Price Prediction: Consolidation Before New Surges?
The XRP 4-hour price chart presents a potential support benchmark at $0.58. A breach of this key level could trigger a notable slide to $0.51, which equates to a 19% reduction from the current price.
The Exponential Moving Averages (EMAs) on the chart, which are pivotal in discerning price trends by dampening the noise of price volatility, are particularly telling at this juncture. Unlike the Simple Moving Averages (SMAs), EMAs give greater weight to recent price action, making them more attuned to capturing swift market shifts.
Currently, the EMA lines on the XRP chart are converging and hovering in close proximity to the actual price line. This clustering of EMAs around the current price is indicative of a price consolidation phase in the market. Such tight consolidation suggests that the market is in a state of equilibrium, with neither bulls nor bears gaining distinct control.
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This consolidation could be seen as a period of market indecision, with the potential for a breakout in either direction. If XRP prices can sustain and build momentum away from this point of equilibrium, especially amidst the current steady active addresses and ongoing whale activities, XRP could test the resistance near $0.64. A decisive move past this level may clear a path for an ascent towards $0.75, marking a notable recovery.
The post Ripple (XRP) Whales Accumumulate: Can Price Push to a New Yearly High? appeared first on BeInCrypto.
