Since early October, XRP has been trading within a price range. It faced resistance at $0.55 and found support at the $0.51 price level.
This sideways price movement caused large XRP investors, or whales, to start reducing their exposure. Over the past two weeks, XRP whales have reduced their token holdings, dropping to multi-month lows.
Crypto Whales distributes XRP
The poor price performance of XRP over the past few weeks has led whales to distribute some of their tokens. Santiment data reveals that large investors holding between 10,000,000 and 1,000,000,000 XRP tokens have sold 700 million XRP, worth $357 million at current market prices, since October 19th. It became. The group currently holds 15.78 billion tokens, its lowest XRP holdings since early August.
Read more: XRP ETF explained: What it is and how it works
Distribution of XRP supply. Source: Santiment
Decreasing XRP whale holdings is a significant bearish indicator. Whales are large investors who often have a significant impact on market trends.
When they start selling their positions, it indicates a loss of confidence in the future performance of the token. This could lead to a decrease in demand for XRP, putting further downward pressure on its price.
Additionally, the decline in XRP whale activity coincides with a steady decline in total supply included in profits. According to on-chain data, 71.29% of the total altcoin supply is currently profitable, down from 89% on October 1st. This represents a significant 20% decrease over the past 27 days.
Profit percentage of total XRP supply. Source: Santimento
If the supply of assets as a percentage of profits decreases, it indicates that a large proportion of assets are incurring losses. This has a huge impact on market sentiment and prices.
When more holders are underwater, they are more likely to sell their positions to cut losses, increasing selling pressure on the asset. This increased selling pressure may cause a downward trend in prices.
Price prediction for XRP price: Multi-month lows are just around the corner
As of this writing, XRP is trading at $0.51 and hovering around the support line of the horizontal channel. Selling pressure could increase as whale activity declines and less supply is needed to sustain profits.
If the bulls fail to defend this support level, the XRP price could fall towards $0.46. If bearish pressure increases, the altcoin risks revisiting the July 5 low of $0.38.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
XRP price analysis. Source: TradingView
Conversely, if the market momentum changes, the XRP price could break through the $0.55 resistance level with a target of $0.60.
Disclaimer
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