From its July high of almost $0.95, Ripple’s price was in a decline as the euphoria around a partial win in the case versus the Securities and Exchange Commission (SEC) settled.
XRP price decreased by 54% at its lowest point on August 17 as it fell to $0.43.
It has then recovered slightly as it’s currently being traded at around $0.52, but the increase was made sharply, effectively whipping all the gains previously generated on the SEC news.
Meanwhile, there is an indication that XRP whales have been stacking up the token, using the price decrease to acquire it at a better price.
In a recent Tweet , market intelligence platform Santiment pointed out that the recovery from August 17 can be attributed to the increased whale activity.
In this analysis, we are going to look deeper into the XRP whale holding and whether it can provide an indication for future price pathways.
According to Santiment data XRP Supply Distribution, 221 addresses are holding between 10M-1B $XRP. They now hold a combined 16.13B tokens worth $8.71B.
Zooming out the same chart and comparing it with the previous pre-bull market cycle, we can see a similar pattern.
The price range between $0.20 and $0.40 from May 2019 to October 2020 was followed by an increase in whale activity, which supports an accumulation zone theory. Since June 22, XRP price has also formed a range until it spiked up to its July 2023 high and was also followed by an increase in whale activity.
From this comparison, it can be assumed that it was an accumulation zone. Although a less lasting one, it led to a significant price increase, with the number of coins held by these two major cohorts being the same as around the last bull market high of $1.82.
The price retraced back in the accumulation zone, which can be examined on the following price chart, as its analysis reflects the possibility of a starting bull cycle.
In some of our previous analyses, we have been anticipating that the price of XRP will go back to the $0.40 area, more specifically $0.37.
This was expected due to the price pattern of the previous increase being corrective and still the part of the correction that started all the way back from the all-time high of $3.34.
Since it was the second X wave from the complex multi-year WXYXZ correction, the current downfall is expected to be wave Z, which is its final one.
As this correction outlined a large triangle, the target price for the end of its decline trend was projected to be on its support level which is at $0.37. With a little more downside to go, there could be a final retest of support before a bounce that can set the price of Ripple for its most significant breakout in years.
If this breakout occurs from the large triangle somewhere above $0.85, it will signal the start of a bull cycle and the potential of the price headed towards its new all-time high above $3.50.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.