Ripple’s (XRP) price broke above $0.52 for the first time this month on Thursday, as bullish traders seized control following the Fed meeting. Vital on-chain indicators suggest that the bullish XRP whale investors could push for more price gains.

Ripple’s (XRP) price finally broke above the $0.52 resistance on Thursday after nearly 3-weeks of stagnation. With the bullish whale investors firmly in the driving seat, can they sustain the upward momentum long enough to reclaim the $0.60 XRP price target?

Whale Investors Made Another $83 Million Inflow This Week

After languishing around the $0.50 territory for nearly 3-weeks, XRP price reclaimed the $0.52 territory on September 21. On-chain data reveals that a cluster of millionaire crypto whales holding 10 million to 100 million XRP appears to be the main driver behind the ongoing price resurgence.

The chart below shows that the whale investors added another 160 million XRP to their cumulative wallet balances between September 16 and September 22.

With prices currently hovering around $0.52, the newly-acquired 160 million XRP coins are worth approximately $83.2 million.

Whale investors are known to HODL for much longer periods than retail traders. If this holds true, the recent whale inflows could temporarily reduce market supply and trigger more upswing in the coming days.

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After Recent Price Gains, XRP Is Growing Increasingly Overvalued

After reclaiming $0.52 this week, XRP now appears to be approaching overbought territory. Pointedly, the Network Value to Transaction Volume (NVT) ratio has been increasing since September 1.

Between September 1, and September 22, the XRP NVT ratio rose from 19.93 to 207, representing a 941.21% increase.

The NVT ratio evaluates the cryptocurrency’s market valuation against the underlying transactional activity on the blockchain network. When it rises persistently, it signals that the network’s transactional activity is not keeping up with the price increase.

Hence, the chart above signals that XRP could be approaching an overvalued status. And without a significant boost in network usage, another downswing below $0.50 could be imminent.

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XRP Price Prediction: Possible Retracement Below $0.50

Without a significant increase in network demand, XRP price could sharply retrace below $0.50 once the millionaire whales cool their buying pressure.

The Market Value to Reallized Value (MVRV) ratio, which evaluates the net financial position of current holders, also validates this prediction.

With prices currently sitting at $0.52, investors who bought XRP within the past month are currently holding 2% unrealized profits. If a downswing sets in, and the majority look to avoid slipping into loss positions, the $0.50 support level could pose a major obstacle to the bears.

But if the whales run out of steam, then XRP price could retrace below $0.50 as predicted.

Conversely, the bullish millionaire XRP whale investors could hold out for around 15% gains at $0.60. However, those looking to book profits at the 10% margin could close their positions when XRP hits $0.55.

But if the network demand grows and market momentum flips bullish, XRP price could promptly reclaim $0.60.

The post Ripple (XRP) Millionaire Whales Seize Control – Is $0.60 a Viable Target? appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ September 22, 2023 7:54 pm