Ripple (XRP) price rallied 30% last week, reacting to the favorable conclusion to the SEC vs. Ripple lawsuit. While the upswing was impressive, it failed to produce a higher high that caused whale investors to offload their holdings. As a result of this on-chain movement, XRP value could face a major correction in the coming days.

XRP Price ready to slide lower

XRP price shot up 30% on August 7 and set up a swing high of $0.644, lower than the July 30 local top of $0.658. From a market structure standpoint, this lower high sends a message that the buyers could not propel the token higher, aka lack of demand. As a result, Ripple price has dropped 9% since the $0.644 swing high.

As XRP price exchanges hands at $0.585, investors can expect the 30% rally to come undone soon.

A start-of-the-week rally could push XRP, a remittance token, to retest the $0.613 resistance level. Rejection here would be a sign that buyers are exhausted. Such a signal would hint at a nearly 10% correction to the $0.560 to $0.555 support range.

On-chain Data Suggests Bearish Outlook for Ripple

While the technical perspective suggests a bearish outlook for XRP price, the on-chain data confirms it. Santiment’s Supply Distribution By Balance metric shows that wallets holding 1 million to 10 million XRP accumulated 230 million tokens from July 17 to August 2, anticipating a positive outcome of the SEC vs. Ripple lawsuit.

The same wallets started booking profits and offloading their tokens, and as of August 7, their balance reached a low of 3.8 billion after dumping 150 million XRP.

Additionally, the Whale Transaction Count indicator corroborates this movement, which tracks transfers worth $100,000 or more. This metric spiked on August 7, when the XRP price shot up 30%, indicating that these whales were selling.

The technical and on-chain data hint that institutional investors sold their holdings after the conclusion of the SEC vs. Ripple lawsuit. While a short-term correction is likely, it could be undone if Bitcoin price continues to move higher.

Such a development could interest buyers and propel the XRP price above the $0.613 critical resistance level. Flipping this barrier into a support floor could attract bullish momentum and potentially propel XRP to $0.655m, the next key hurdle.

Read more: Ripple Stablecoin RLUSD Private Beta Live On XRP Ledger & Ethereum Mainnet

The post XRP Price Prediction: Why Ripple Is Not A Good Buy Here appeared first on CoinGape.

---

Filed under: News - @ August 10, 2024 9:19 am