XRP has been struggling to maintain upward momentum, particularly above the critical 50% Fibonacci retracement level at $0.60. The altcoin has repeatedly failed to break this resistance and now finds itself stuck below the 38.2% Fibonacci level at $0.55.
Despite showing signs of a potential recovery, market sentiment remains cautious. However, recent activities by crypto whales—large investors holding substantial XRP amounts—have sparked optimism for a possible price surge.
Crypto Whales Drive Optimism for XRP
Large crypto whale addresses, holding between 10 million and 100 million XRP, have significantly impacted XRP’s price. In the past week, these whale addresses accumulated over 330 million XRP worth approximately $177 million, indicating bullish expectations for a price increase.
Historically, large accumulations by crypto whales signal positive market sentiment, often preceding upward price movements. With this recent whale activity, XRP could regain momentum and potentially break through its current resistance levels.
Market Indicators: Mean Coin Age and Whale Accumulation
On a broader scale, the Mean Coin Age (MCA) indicator offers insights into XRP holder behavior. In late August and early September, the MCA noted a dip, a bearish signal indicating increased XRP movement within addresses. However, a recent uptick in the MCA suggests that long-term holders are once again opting to HODL rather than move their XRP.
This shift signals growing confidence among XRP holders, and the reduced movement of XRP across addresses suggests potential price stability. The upward trend in the MCA could further support XRP’s bullish momentum, with HODLing behavior playing a crucial role in fostering price growth in the near future.
XRP Price Prediction: Resistance Levels to Watch
XRP has seen a modest 3% increase over the past five days, a cautious sign of recovery. The 38.2% Fibonacci retracement level at $0.55 continues to act as a resistance point, much like it did during the consolidation phase from mid-April to mid-June.
Nevertheless, with whale accumulation and the MCA’s upward trend, there’s potential for XRP to breach the $0.55 resistance level. If XRP flips this level into support, it could recover recent losses and gain renewed upward momentum.
However, failure to breach the $0.55 mark could result in XRP trading between this level and the 23.6% Fibonacci line at $0.49. This lower level, often considered the bear market support floor, might serve as a buffer against further declines. If XRP consolidates here, it could invalidate the bullish outlook, keeping the price range-bound for the foreseeable future.
