Targeted activity in the Ripple ecosystem intensifies after the collapse to a minimum since early July.
The number of XRP wallets involved in daily transactions decreased in the first half of October, while the spot price of the cryptocurrency fell in parallel.
At the end of last week, the coin dropped to $2.29, and the number of active addresses on the network at this point was 19,560.
According to CryptpQuant, network activity began to increase this week, and the day before the number of wallets regularly sending and receiving funds exceeded 23,900.
Typically, increased targeted activity leads to an increase in the value of digital currency, reminds the team of MEXC Research.
The participation of more traders in transactions created conditions for the rebound of XRP, which the day before tested values above $2.50 on the MEXC exchange.
Whale swim signals reaching bottom
Over the past 24 hours, whale wallets have purchased about 30 million XRP. If in the first half of October this cohort of investors predominantly refrained from participating in transactions, then at the weekend it returned to the market.
- Whales go hunting at the moment when the asset is at the bottom. They resume purchases to prevent its further drawdown. Just such a scenario we observed in mid-October.
On the MEXC platform, the local bottom was recorded October 17 at 2.19 USDT. The fall in the RSI relative strength index below 10 signaled a strong oversold of the asset.
The subsequent rebound was the result of connecting traders who were not interested in weakening the XRP rate below $2.
Altcoin was able to enlist powerful, above all, whale support. On Tuesday, October 21, XRP briefly rose to $2.553, but quickly corrected to $2.49.
According to analysts, you can identify two key zones that that traders should focus on in the near future.
- The support zone is at $2.10 and the resistance zone is at $2.80. Most likely, within a few days the coin will trade in this range.
However, another scenario cannot be ruled out in which volatility will worsen, which will lead to an increase in the amplitude of XRP fluctuations.
Growth in the value of cryptocurrency is possible in the event of a significant increase in network activity. For example, in mid-July, when XRP reached $3.55, the daily number of addresses regularly sending and receiving funds was approaching 50,500 (according to CryptoQuant).
Whales and sharks navigate bullish scenario
During the recent fall of XRP, interest in the asset in the futures market dropped to $1.182 billion (по Коinalyze). This week, the amount of contracts began to grow again, and the day before it exceeded $1.323 billion.
- The strengthening of the XRP rate in the spot market has led to an improvement in its attractiveness in the crypto derivatives market. Traders focusing on the crypto’s long-term growth expect it to jump above $3 in the coming weeks.
On MEXC the funding rate on perpetual swaps on Tuesday is in the black, which also indicates the dominance of bullish sentiment over long distance.
On social networks Telegram, Reddit, X and 4Chat, the spike in negativity in the middle of this month was a reaction to the short-term drop in XRP.
On some trading floors, the coin even dropped to $1.90. At this point, the mood on social networks became the most pessimistic since January, Santiment notes.
- Users feared that the crypto would retreat, at least until the end of October. The negative moved to the exchanges, where traders who succumbed to panic aggressively sold. They dropped their coins and exited the asset, while cohorts of long-term investors, on the contrary, continued to accumulate XRP.
The most active during periods of falling digital currency are traditionally large and medium-sized addresses whales and sharks.
Wallets holding at least 10,000 XRP took advantage of the fall of the coin and began to buy at comfortable prices. Over the past 30 days, the number of such addresses has increased by 1.8% and set a new record, exceeding 317,500.
A similar situation was observed at the end of last year. Whales and sharks then bought XRP against the background of Donald Trump’s victory in the presidential campaign. Investors increased reserves, as they believed the policy that promised to legalize the digital currency market in the United States.
Disclaimer: This information is not investment, tax, legal, financial, accounting, advisory or any other related services advice, nor is it advice to buy, sell or hold any assets. MEXC Training provides information for reference purposes only and is not investment advice. Please ensure that you fully understand all risks and exercise caution when investing. The platform is not responsible for users’ investment decisions.
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