The Ripple (XRP) price is showing signs of an upcoming consolidation phase as whales begin to pile up again, indicating a potential rally after this period of stability. This outlook is reinforced by the rising daily active addresses since last week, indicating renewed interest, and the EMA lines confirming a strong consolidation path.
Such trends indicate that the market is preparing for a bullish turn, with the current phase laying the foundation for future growth.
Whales are collecting XRP again
There has been a noticeable increase in the number of addresses holding significant amounts of XRP, specifically those with holdings ranging from 10 million to 100 million coins. This increase from 1,537 addresses on March 16 to 1,565 on March 28 is a significant increase that indicates an increasing momentum among the so-called ‘whale’ investors. This is despite the SEC targeting Ripple Labs.
Traditionally, when such large-scale accumulations occur, it is considered a bullish signal. The rationale is that these heavyweight investors are likely positioning themselves for an expected upward price movement, banking on their substantial holdings to pay off with a future rise in value.
Furthermore, it is important to consider this recent whaling activity in context: the weekly benchmark for addresses of this size has been in steady decline since the beginning of the year. The reversal of this trend in the past two weeks could be indicative of a larger market sentiment shift.
This implies that confidence may return among these larger holders, and they are now engaged in a strategic build-up of their XRP reserves.
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Daily active addresses are also increasing
On March 9, XRP’s activity peaked with a significant rise to 47,930 daily active addresses. This immediately preceded a sharp price increase from $0.63 to $0.72 over the following two days.
After this rally, the daily active addresses fell flat. This reflected the price of XRP as it entered a correction period and settled at $0.61 by March 15.
However, a downward trend in the 7-day moving average of daily active addresses was observed from March 15 to March 23. During that time, XRP’s price has now oscillated between $0.59 and $0.62. This indicates a sideways market movement without a clear direction.
The period between March 22 and March 28 saw a renewed interest in XRP, with daily active addresses rising from 27,351 to 30,858. Such a boost in network activity indicates growing investor engagement, possibly paving the way for an upward price trend.
Active addresses tend to reflect market sentiment. An increase in these addresses often means more trading and larger transactions, indicating a possible rise in XRP’s price as demand rises.
XRP Price Prediction: Consolidation Before New Highs?
The XRP 4-hour price chart provides a potential support measure at $0.58. A breach of this key level could trigger a significant drop to $0.51, which is equivalent to a 19% reduction from the current price.
The exponential moving averages (EMAs) on the chart, which are crucial in distinguishing price trends by muting the noise of price volatility, are especially telling at this time. Unlike the Simple Moving Averages (SMAs), EMAs give greater weight to recent price action, making them more attuned to capturing rapid market moves.
Currently, the EMA lines on the XRP chart are converging and hovering in close proximity to the actual price line. This grouping of EMAs around the current price is indicative of a price consolidation phase in the market. Such tight consolidation indicates that the market is in a state of equilibrium, with neither bulls nor bears gaining clear control.
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This consolidation can be seen as a period of market indecision, with the potential for a breakout in either direction. If XRP prices can maintain and build momentum away from this point of equilibrium, especially amid the current steady active addresses and ongoing whale activity, XRP could test the resistance near $0.64. A decisive move beyond this level could pave the way for a rise to $0.75, indicating a notable recovery.
Disclaimer
In accordance with the Trust Project Guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimers have been updated.
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