BeInCrypto - Ripple (XRP) price has gained 4.5% over the past two weeks, despite the industry-wide correction in the altcoin markets. The buying trend among a cohort of optimistic crypto whales suggests a positive XRP price prediction for the coming weeks.
May has begun on a bullish note for XRP, the native coin of Ripple’s XRP Ledger blockchain network. Whale investors are looking set to flip the negative 7% performance recorded in April. Here’s how their recent bullish actions could validate a positive XRP price prediction.
XRP Whales Are Buying Despite Price Correction
XRP whales entered May in an accumulation frenzy, according to Santiment. On-chain data presented below illustrated how crypto whale investors holding 100 million to one billion XRP coins have been buying since the close of April.
In the 14 trading days between April 21 and May 5, they added 610 million coins to their wallet balances.
Ripple (XRP) Price Prediction May 2023. Whales Wallet Balances Source: Santiment
At the current market price of $0.47, the newly-added 610 million XRP is worth approximately $287 million. And when crypto whales invest such a huge amount within a few weeks, it suggests that they are positioning for future price gains.
There is a Positive Divergence Between Prices and Number of Daily Users
Furthermore, there has been a positive Divergence Between Prices and the number of Daily Active Addresses (DAA) on the XRP network. Specifically, while the price dropped by 4% between April 29 and May 5, DAA has bullishly risen by 27%.
Ripple (XRP) Price Prediction May 2023. Daily Active Addresses. Source: Santiment
DAA measures the number of unique addresses interacting on a blockchain network daily. When it rises during a price correction, it signals that the fundamentals remain solid and the underlying products hosted on the blockchain network remain in high demand.
Hence, with the accumulation trend among the whale and the increase in DAA, XRP will likely attract sufficient demand to propel its next bull run.
XRP Price Prediction: $0.50 Up Next
Over the past week, bullish XRP holders have fiercely defended the $0.45 support level. And according to Santiment’s Market-Value to Realized-Value (MVRV) data, the bulls may now push to actualize a bullish XRP price prediction to reach $0.50.
Notably, most crypto investors that bought XRP within the past month are sitting on unrealized losses of about 3%. Historical data suggests they are unlikely to sell until the price surges by another 10% toward $0.50.
And If XRP can break beyond that $0.50 resistance level, it could enter a prolonged rally toward the $0.60 zone before the bears begin to regain control.
Ripple (XRP) Price Prediction, May 2023. MVRV Ratio. May 2023. Source: Santiment
On the flip side, the bears could still flip the narrative if the XRP price drops below $0.45. Nevertheless, investors will likely offer bullish support at this level as they look to keep their loss position below 5%.
Otherwise, XRP could drop much further toward the next significant support level at $0.40.
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