After remaining firmly planted in the $0.50 region for the majority of September, the price of #Ripple (XRP) approached that threshold on Friday. The most important on-chain indicators that may affect #XRP pricing in the next few weeks are analysed.
Once XRP 's price momentarily rose above $0.55, the amount of traders cashing in their gains has increased dramatically, as seen by transactions recorded on the blockchain. Will the whales weather the storm of selling when the general crypto market attitude becomes bullish?
At a price of $0.55, $XRP profit transfers have reached 3.5 billion.
The price of XRP, which has been relatively stable for the past month, may be about to have a significant breakout. Nevertheless, after flirting with $0.55 for a short time on September 29 due to profit taking, the price immediately retraced below $0.53.
The daily on-chain profit transaction volume for XRP on October 1 was 3.48 billion coins.
Santiment, an on-chain analytics platform, reports that the Ripple-supported network has not seen this degree of profit-taking since February 2021.
Daily On-chain Transaction Volume in Profit is a measure of the volume of transactions that result in a net gain. The indicator evaluates the current XRP price in relation to the latest traded price of each fluctuating cryptocurrency.
Each currency is considered to have been sold at a profit if its prior selling price was lower than its current market value of XRP. On the other hand, if the last selling price was higher than the current market value, the quantity sold is considered a loss.
An extremely large profit-harvesting in the XRP market was registered at 3.48 billion XRP on Sunday.
Taking into consideration the monthly 1 billion XRP escrow movement, the total amount of XRP moving at a profit is still 2.48 billion.
Investors may be anticipating a decline, judging by the huge amount of profits. Hence, as the price rose above $0.55, they acted quickly to cash in.
Interestingly, substantial XRP price corrections followed similar surges in Daily On-chain Transaction Volume in Profit in September 2021 and March 2022.
Record levels of profit taking on the XRP ledger network may be absorbed by bullish crypto whales. But, a group of crypto titans with a bullish outlook may have different plans.
As of September 27th, just 3.73 billion XRP were held by the whales that had 1,000,000 or more. The next table, however, demonstrates how that number has risen to $3.79 billion as of September 29.
This means that during the last five days, when paper handholders were raking in gains, whales were actively stockpiling 60 million coins.
At today's exchange rate of $0.52, the sixty million coins the whales just bought are worth about $31.2 million. It looks that a severe price fall was avoided because to the heavy purchasing activity by XRP whale investors.
First, the market surplus was quickly absorbed by the whales' massive influx of cash at just the right time. If this favourable trend persists, it may convince other strategic investors to establish holdings of their own.
Moreover, it is unclear if the widespread bullishness in the altcoin markets will be enough to persuade XRP holders to halt the profit-taking frenzy.
Forecast for the XRP Price: More Range Boundary Testing Ahead of a Big Breakout
If whales increase their purchasing pressure, the XRP price will likely stabilise above the $0.51 level, where it has been trading for the past week.
This forecast is corroborated by the ratio of XRP holders' market value to their realised value (MVRV).
Investors who purchased XRP during the previous month are sitting on around 3% unrealized gains with prices at $0.53. The current profit-taking run is expected to cool down until investors reach the break-even point, perhaps around $0.51.
Yet, if a severe downturn does occur, most people may try to limit their losses to less than 7%. The next major support level would therefore be at $0.49.
Santiment's MVRV Ratio for Predicting the Price of Ripple (XRP)
If, on the other hand, the XRP price recovers $0.60, the bulls may restore control. Those anticipating a 10% return on investment, however, are likely to exit their holdings when the XRP price re-visits $0.55.
Their selling might put a damper on the breakthrough of the XRP price. If bulls are successful in breaking over the $0.55 resistance level, though, XRP might quickly retake $0.60.
