Digital asset management firm Coinshares released its latest weekly report on June 19, which outlines how the top cryptocurrencies have fared by market capitalization over the past seven days.
XRP was among the coins that benefited from increased demand as investor preference shifted towards altcoins. XRP was still experiencing short-term selling pressure despite the favorable weekly result.
According to the Coinshares report, altcoins have been getting more attention from investors after last week’s crash. Investors added more than $1 million to their XRP positions, making it the biggest gainer in the asset management firm’s portfolio.
The large number of XRP entries reflected the optimism traders have regarding the legal battle between the SEC and Ripple.
Assessing the Impact on XRP Price Action
The inflow of liquidity has been evident in the XRP price action over the past four days. It changed hands at $0.49 at press time, representing an 8.8% advantage. The bullish pivot also occurred just after the price retested a rising support line.
The bounce also coincided with a recent statement from Ripple CEO Brad Garlinghouse about the Hinman documents. The statement may have played a key role in rejuvenating investor interest.
What does this mean for the performance of the altcoin in the short and medium term? XRP’s performance still depends on the supposed outcome of the legal battle between Ripple and the SEC.
Apparently, things were tilting in Ripple’s favor, although the final decision had not yet been made. Perhaps a look at the current on-chain activity related to XRP can offer some ideas on what to expect.
XRP On-Chain Activity
XRP daily active addresses experienced a slight rebound in mid-June. However, the same metric has since returned to its 4-week low range. This result showed a lack of investor confidence, as seen in the weighted sentiment metric, which revealed a lack of strong optimism.
The above metrics suggested that the market may not be ready for a strong move higher anytime soon. That expectation is supported by the fact that supply-sharing-based whale activity confirmed that short-term profit-taking was still at stake.
The XRP supply distribution metric revealed that the largest whale categories have been buying the cryptocurrency since the second week of June. This means that they have been contributing to the return of buying pressure.
However, addresses that have more than 100 million XRP have been downloading some of their coins in the last three days.
The largest whale category controlled more than 18% of the total circulating supply of XRP so far. This means that selling pressure from the same whale category has the potential to offset some, if not all, of the bullish momentum from other whale categories.
In another vein, according to CryptoPredictions, the XRP price for today (06.20.2023) is forecast to be in the price range of $0.41860481954205 – $0.61559532285595. The XRP price is forecast to end today at $0.49247625828476.
XRP started June 2023 at $0.48915523414388 and is forecast to end the month at $0.64571641762697. During June, the expected maximum price of XRP is $0.71338297541922 and the minimum is $0.48510042328507.
By Audy Castaneda
