Ripple Whales’ Buying Spree Fails to Boost XRP Value
Ripple whales have begun to stockpile the digital currency XRP, but their accumulation efforts have not been enough to revive its price. This surge in whale activity followed the recent announcement by the Federal Reserve on June 12 that it would maintain interest rates at their current levels.
The US central bank revealed its plans to only cut interest rates once in 2024, a significant change from earlier in the year when three rate cuts were anticipated. Despite this news, whales holding between 10 to 100 million XRP have shown increased volatility, indicating potential active trading or asset redistribution within this range. On the other hand, those with over 1 billion XRP have been steadily increasing their holdings since mid-April, suggesting a deliberate strategy of accumulation.
The behavior of these large holders may indicate a belief in positive market developments or future price increases. In contrast, smaller whales with holdings between 1 and 10 million XRP have experienced a gradual decrease in their holdings, particularly from December to late March, followed by increased variability.
The whale wallets holding between 100 million to 1 billion XRP stabilized after a notable drop in early April. The anticipation of interest rate cuts by the Federal Reserve, even if only one is planned for 2024, could be a contributing factor to the accumulation of XRP tokens by whales. Lower interest rates generally lead to increased liquidity, which in turn can drive investment in riskier assets like cryptocurrencies.
Despite the efforts of Ripple whales to accumulate XRP, the price of the digital currency dropped by nearly 10% for the week to reach a low near $0.46 on June 14. If this downward trend continues, XRP price could fall to the support level near $0.45. Failure to hold this support could lead to a drop to the next support level near $0.42 before any potential recovery.
On the flip side, the increased accumulation of XRP by whales could potentially help push the price towards the resistance level near $0.5. Breaking above this resistance and consolidating could then see the price of XRP rise towards the 50-day EMA resistance near $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 moving towards the oversold region, which traders often view as a bullish reversal signal.