Analysis of 3 important On-Chain Metrics

The Ripple (XRP) price has failed to reclaim $0.70 since the start of August, falling to fifth place in the global crypto ranking in the process. On-chain analysis uncovers key data points that could propel the XRP price toward the $1 milestone.

XRP price has moved below $0.70 in the past eleven days. But a closer look at some underlying on-chain indicators suggests another price rally may be on the horizon.

Network activity spike could push XRP to $1

Despite the recent price trend, XRP has seen a noticeable increase in network activity over the past two weeks. According to Santiment data, XRP attracted 182,860 active users on August 8. After falling slightly, it rose again to 135,000 active addresses at the end of August 10.

The 182,860 active addresses on August 9th is XRP’s peak network activity so far this month. The last time XRP attracted this level of network demand was in May.

To put things in perspective, this August peak is more than three times higher than last month’s high of 56,145 recorded on July 13, fueled by the famous victory in the SEC lawsuit.

The Daily Active Addresses (DAA) data point measures the number of network participants performing economic activity on a blockchain network. This indicates growing demand and transaction activity across the network when it increases.

Remarkably, the chart above shows that over the past 4 months, XRP price has often entered a double-digit rally when the DAA crosses the 100,000 mark

If this historical pattern occurs again, this DAA data point could drive the XRP price towards $1 in the coming weeks.

Bullish whale investors exert pressure behind the scenes

The second important data point that could drive XRP price to reclaim $1 is the accumulation frenzy among whale investors. A strategic group of whales holding 10 million to 100 million coins have been buying up XRP since the beginning of August.

The chart below shows that whales had a cumulative balance of 4.64 billion tokens at the end of July. But remarkably, it has now increased to 4.69 billion as of August 11.

Whale Wallet Balances tracks large institutional investors’ trading activity by monitoring real-time changes in their holdings. With XRP price currently standing at $0.63, this means that the whales have already made fresh inflows of $31.5 million in August.

In particular, the timing of this ongoing accumulation wave suggests that the whales started buying strategically once XRP prices fell below $0.70.

In summary, the DAA and Whales Wallet balances are two important data points that currently point to an imminent XRP price rise to $1.

XRP Price Prediction: After Consolidation, Next Rally May Reach $1

If the surge in network demand continues, it could push the XRP price back above the $1 milestone during its next bull rally. Third, this view is validated by the market value to realized value (MVRV) data point, which measures the net financial position of current XRP holders.

The chart below shows that most investors who bought XRP in the last 30 days are now staring at 11% unrealized losses.

As things stand, investors are likely to shelve large buyback plans until they break even again around the $0.70 mark.

However, given the growing demand for networks, the bulls may pass that resistance to reclaim the $1 milestone.

Conversely, the XRP bears could force a prolonged price correction if XRP drops below $0.55. However, the current holders will try to mount a buying wall around $0.60 to avoid booking losses greater than 15%.

Although less likely, the XRP price could drop to $0.55 if that buying wall caves.