Ripple Whales’ Buying Spree Fails to Boost XRP Price
Ripple whales have begun accumulating XRP, the project’s native token. This accumulation frenzy came after the Federal Reserve’s announcement on June 12 that it would maintain interest rates at their current levels.
The US central bank indicated that it only plans to lower interest rates once in 2024, a change from earlier plans for three rate cuts. This announcement seems to have prompted the whales to start accumulating XRP.
Whales holding between 10 to 100 million XRP have shown increased activity, possibly indicating trading or asset redistribution within this range. Meanwhile, those with over 1 billion XRP have been steadily increasing their holdings since mid-April, suggesting a deliberate accumulation strategy.
This trend among the largest holders suggests they may be positioning themselves strategically in anticipation of positive market developments or future price increases. On the other hand, smaller whales holding between 1 and 10 million XRP have seen a gradual decrease in their holdings, especially from December to late March, followed by more fluctuations.
The wallets holding 100 million to 1 billion XRP stabilized after a significant drop in early April. The talk of rate cuts by the Fed, even if it’s just one in 2024, could be driving the accumulation of XRP by whales. Lower interest rates typically lead to increased liquidity, encouraging investment in riskier assets like cryptocurrencies.
Despite the accumulation by Ripple whales, the price of XRP dropped by nearly 10% week-to-date, hitting a low near $0.46 on June 14. If the downtrend continues, the price could fall to support near $0.45, and failure to hold that level could see it drop to $0.42 before rebounding.
On the other hand, the accumulation by Ripple whales could potentially push the price up to resistance near $0.5. Breaking and consolidating above this level could drive the price towards the 50-day EMA resistance around $0.52.
The relative strength index (RSI) for XRP remains neutral, with a score of 32.22 on the daily charts. The RSI trendline is heading south towards the oversold region, which traders often interpret as a bullish reversal signal.