XRP price raced above $0.60 early this week as the Ripple team scored another landmark victory over the Security and Exchange Commission (SEC). Some vital on-chain indicators suggest the XRP price rally could soon hit a wall.
After double-digit gains in October, XRP price is now approaching a historically significant resistance at $0.65. On-chain analysis examines how investors could react.
Crypto Whales Accumulated Significant Amount of XRP at $0.65
The XRP Ledger Network made another giant stride towards regulatory clarity as the SEC dropped charges against top executives on October 19. As expected, XRP price has since entered a rapid 22% rally above $0.60 as the market reacted positively to the news.
A strategic XRP cohort of whales who intensified their buying pressure over the last 10 days has been pivotal to the rally.
As depicted in the Santiment chart below, the whales (wallets holding 10 million to 100 million XRP) have increased their holdings by another 80 million coins between October 21 and November 2.
While the recent buying pressure has impacted XRP prices positively, a closer look at the whales’ historical accumulation trend raises some warning signals.
The chart above illustrates that XRP was trading around $0.65 when the ongoing whale buying frenzy began in early August. Hence, it raises credible concerns that the whales could book profits once the XRP price approaches that price range.
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XRP Traders Unrealized Profits Approaches Double-Digits
The current Market Value to Realized Value (MVRV) ratio trends also confirm the early bearish concerns. According to Santiment’s MVRV chart below, investors who bought XRP in the last 90 days could make up to 9% gains if they sold today.
The MVRV ratio estimates current holders’ profitability status by comparing their purchase price to the native coin’s current market value.
The chart depicts that after the 3-month-long buying trend dating back to early August, XRP investors’ unrealized profit is approaching double-digits.
In summary, this indicator also supports the narrative that crypto whales could soon start booking profits.
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XRP Price Prediction: The $0.65 Resistance Could Be Critical
From an on-chain perspective, the XRP price will likely hit a wall once the price approaches $0.65. As seen in the chart below, the Relative Strength Index is currently at 72.30, which is in oversold territory.
Hence, this adds credence to the stance that the XRP price is increasingly at risk of a major sell-off as prices edge closer to $0.65.
Conversely, the bears could attempt to force a downswing toward the $0.50 area. But in that case, a Simple Moving Average price of $0.54 could form a formidable support.
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