The Ripple (XRP) price is approaching $0.55 after a period of stagnation at $0.50. On-chain analysis reveals key indicators that could impact XRP prices in the coming weeks.
On-chain data shows a surge in XRP profit-taking volume after the price briefly exceeded $0.55. The question is whether the whales can absorb the selling pressure as the sentiment in the crypto market turns bullish.
XRP Profit-Taking Transfers Hit 3.5 Billion as Price Taps $0.55
XRP’s price has been relatively stagnant, but it seems to be on the brink of a major breakout. However, after briefly reaching $0.55 on September 29, profit-taking caused a retracement below $0.53.
On October 1, 3.48 billion XRP coins were traded at a profit, marking the highest profit-taking level since February 2021, according to data from Santiment.
The Daily On-chain Transaction Volume in Profit measures the volume of profit-taking transactions by comparing current XRP prices to the last traded price of each coin. The recent high profit volume suggests investors fear a potential drop and rushed to harvest profits when the price exceeded $0.55.
Bullish Crypto Whales May Soak Up the Selling Pressure
While profit-taking on the XRP ledger network has reached record highs, bullish crypto whales have been accumulating XRP aggressively.
Whales holding 1 million to 10 million XRP coins increased their holdings from 3.73 billion to 3.79 billion between September 27 and September 29.
This buying activity has helped soak up excess market supply and potentially averted a major price correction.
XRP Price Prediction: More Consolidation Before Major Breakout
If whales continue to intensify their buying pressure, XRP’s price will likely consolidate above the $0.51 range.
The Market Value to Realized Value (MVRV) ratio supports this prediction, as investors who bought XRP in the past month currently hold approximately 3% unclaimed profits.
If a major downswing occurs, the $0.49 area will be a significant support level.
Hot Take: XRP Price Depends on Whales and Profit-Taking
The XRP price is at a crucial point as profit-taking reaches record levels while bullish crypto whales accumulate more coins. The question is whether the whales can absorb the selling pressure and prevent a major price correction.
Investors should closely monitor the profit-taking volume and whale activity to gauge the future direction of XRP prices. If profit-taking continues to dominate, it could signal a potential drop. However, if the whales maintain their buying trend, it could help stabilize the market and lead to a breakout. Ultimately, the fate of XRP’s price hinges on the actions of these key players.
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