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Highlights
- Ripple’s lawsuit against the SEC enters the homestretch,
- XRP price steadies above $0.54 support while facing resistance at $0.5622.
- Whale’s increasing risk appetite for XRP could propel the price to $1 in May.
XRP price prediction: The largest cross-border money remittance token reclaimed the position above $0.5 support after Bitcoin halving last weekend. While the bullish move reflected increased investor confidence after a couple of weeks characterized by uncertainty amid geopolitical tensions, XRP price struggled to sustain the momentum.
Market doldrums have since taken over, with the token unable to break above resistance at $0.5622. Meanwhile, on the downside support appears to have established at $0.54, allowing for sideways trading to take place.
XRP Price Prediction: Are Whales Buying The Dip?
The crypto sell-off in April did not spare XRP, as the token swept through support lower levels at $0.4294 from monthly highs at $0.6422 and the peak in March at $0.7484.
Intriguingly, whales known for buying in large quantities perceived the price drop as a discount. Based on blockchain data from Santiment, this cohort of investors has been busy scooping up millions of XRP tokens, suggesting that the project has a long-term bullish outlook.
Ali_charts, a known blockchain analyst, highlighted the whales’ activities who have so far purchased at least 31 million XRP in the last week.
$XRP dropped from $0.62 to $0.41, and #crypto whales took notice. They've bought over 31 million #XRP in just the past week! pic.twitter.com/3FCA3PR3hi
— Ali (@ali_charts) April 23, 2024
This means their supply distribution had increased by 11.27%, featuring 249 addresses. On further observation, CoinGape found that whales have in the last two weeks bought as much as 600 million XRP.
The active accumulation by giant whale addresses underscores the confidence investors have in XRP despite the legal battle between Ripple, the issuing company, and the Securities and Exchange Commission (SEC).
It is worth noting that the majority of the whale addresses are witnessing unrealized losses. The 30 and 180-day Market Value to Realized Value ratio (MVRV) confirms that XRP is still a buy zone, attracting bets from investors eyeing the bull market in 2024.
Nonetheless, its technical outlook based on the four-hour chart and asserted by the Moving Average Convergence Divergence (MACD) has a bearish bias.
A sell signal from this indicator manifested recently with the red MACD line crossing below the blue signal line.
If the whales continue to rally behind XRP in the coming weeks, the token could build enough momentum to close the gap to $1. Besides, bullish price action tends to create FOMO, which may further accentuate the breakout pace.
In summary, traders need to keep a close eye on the 20-day EMA (blue line on the chart) for providing immediate support at $0.5406 and the 200-day EMA (line in purple) acting as resistance at $0.5621.
Movement on either side of the moving averages would determine the direction XRP price takes in the short term. Nevertheless, with the general outlook of the market being sideways but showing potential, it might not be viable to short XRP at the current market conditions.
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