Although the interest of traders has increased by around 118%, the value of XRP has gone down. Although the token is slightly recovering from its lower levels, a rally into positive territory might drive its price higher.
Many believe Ripple will win the case against the US Securities and Exchange Commission (SEC), causing the price of XRP to fall.
The excitement of a potential victory led the XRP price to rise by almost 15% from October 4th to 9th. However, the collapse of the overall market and the recent FTX crash have pushed XRP as low as USD 0.3436.
Traders Hope the Price of XRP to Increase Significantly
Investors and traders alike remain hopeful though XRP has lost around 89.62% from its all-time high. Bitcoin (BTC) and most altcoins are posting losses in daily data.
Like other cryptocurrencies, the price of XRP has fallen despite the increased interest from traders. The trading volumes of the token have increased by around 118% over the last 24 hours, according to CoinMarketCap.
The seventh strongest altcoin by market capitalization is hovering near its long-term support, not far from USD 0.32.
Despite the apparent considerably bearish price action, on-chain data indicate that Ripple has shown bullish deviations.
There has been a significant increase in daily active addresses (DAAs), recently reaching 48,666, along with high transaction volumes. However, the coin might face problems as the DAA fell by more than 25% in one day.
However, the Ripple network also showed a massive rally, reaching a yearly high not seen since November 2021. A healthy rebound in its growth might help the price rise if the bulls dominate the market.
Although the overall market sentiment remains bearish, nobody knows where the growth of the network and XRP activity might go.
The Behavior of the Ripple Whales over the Last 24 Hours
According to WhaleStats, the Ripple whales have recently transferred around 90 XRP, a curious move. Those long-term holders sent those tokens from unknown wallets to cryptocurrency exchanges.
Previously, the whales made two transactions in which they sent XRP from an unknown cryptocurrency wallet. After that, they transferred 30,000,000 XRP, equivalent to over USD 10.23 million, from an unknown address.
The whales have sent more than USD 35 million worth of XRP to cryptocurrency exchanges. That suggests the sale or redistribution of funds by those long-term holders.
Based on a short-term and long-term MVRV analysis, the price of XRP is slightly rebounding from its lower levels. However, a rally into positive territory might push the asset price out of the negative zone.
On-chain data indicates that the XRP price might be preparing for a bearish action based on the distribution of whales. If the bears dominate the price action, the crypto asset might test the zone below USD 0.30 again.
If not, the next target might be a bullish rally toward the USD 0.45 and USD 0.47 areas. However, investors should research the behavior of XRP before buying it to make better trading decisions.
By Alexander Salazar
