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The XRP price has continued to rise as we enter Q2 2023. Can the reenergized whales and long-term holders push the rise beyond $0.60 after tenaciously defending the $0.50 support throughout the first half of April?
The Ripple (XRP) team revealed the opening of its institutional Crypto Liquidity Hub on April 13. As institutional traders flock to the hub for their cross-chain liquidity and cross-border payment solutions, the move might allow XRP to take advantage of its recent price advances.
According to on-chain statistics, crypto whales and long-term XRP investors tend to have more confidence as a result of the favorable price performance and product improvements.
Crypto whales appear to have resumed acquiring after the sell-off that followed the XRP price rise on March 21.
The Santiment chart below demonstrates that between March 24 and April 14, cryptocurrency whales owning 10 million to 100 million XRP added 30 million coins.
At the current market price, the freshly acquired 350 million are worth $182 million. When whales make large investments in a short amount of time, it boosts demand and gives other investors hope.
Another important optimistic indication is the current accumulation wave among long-term XRP investors.
Santiment claims that the XRP ledger network’s Mean Coin Age has just started to increase. The Mean Coin Age has been increasing since April 1 following a network-wide sell-off in late March.
The graph below illustrates how it climbed by 21% from April 1 and April 4, going from 23.64 to 28.84.
By dividing the total amount of coins owned on a network by the number of days that users have been using their present addresses, Mean Coin Age calculates the mood of long-term users. The growing Mean Coin Age indicates that long-term investors are now setting themselves up for future gains after tapering off in late March.
According to Santiment’s on-chain MVRV statistics, the XRP price might go to $0.60 before encountering severe resistance.
The Market Value to Realized Value (MVRV) data analyzes the typical price at which an asset was purchased by existing holders to identify probable buy/sell zones.
According to the graph below, the majority of BNB owners are now sitting on earnings of around 8%.
According to market patterns and previous MVRV data, holders will probably sell in the 12% range. This suggests that XRP could see backlash once the price approaches $0.55.
However, if it overcomes that barrier, the bulls can push the price higher into $0.62 before investors go into a sell-off frenzy.
In contrast, if the price of XRP falls below the $0.49 support, the bears might invalidate the bullish thesis. The holders might attempt to put a halt to the sell-off at this point and keep their 5% gains, though.
However, if that support level fails to hold, XRP might go further, possibly as low as $0.45, before investors decide to take a loss at 2%.
