The recent crypto market crash after the massive run of XRP earlier this month dampened the expectations of the price as well as Ripple investors.
Many in the market believe that Ripple is on the verge of winning the regulatory battle that has worsened XRP price action.
The price of XRP rose nearly 15% from October 4 to October 9, amid growing anticipation of a win against the US Securities and Exchange Commission (SEC).
However, major market blues and the recent FTX collapse significantly affected the XRP price, bringing it to $0.3436 at press time.
XRP Traders Anticipating Pump
Even though the price was down 89.62% from its all-time high, investors and traders have not given up hope on the coin. At the time of writing, the global crypto market was trading in the red, with Bitcoin, Ethereum and most altcoins showing losses on the daily charts.
XRP too, like its counterparts, was down in terms of price, but an interesting phenomenon was increased trader interest. According to data from CoinMarketCap, XRP trading volume has increased by 118% in the last 24 hours since press time.
The coin, ranked seventh by market cap, was trading near its long-term support at the $0.3200 mark.
While the price action looks largely bearish, there were some bullish divergences in Ripple’s on-chain metrics.
Daily active addresses (DAAs) noted a major spike, coupled with higher transaction volume, rising to 48,666 on 13 November. However, the DAA had fallen by over 25% in a day, which could have spelled some trouble for the coin.
Nonetheless, the growth of Ripple’s network registered a massive boost, reaching a one-year high in November 2021. A healthy increase in network development could aid in price action if the bulls are in control.
However, with the larger market sentiment still bearish, it will be interesting to see where the growth and vibrancy of the network can take the XRP price.
What are wave whales doing?
Ripple Whale has had a peculiar market movement of late. Latest data from WhaleStats shows there were around 90 million XRP coins Transfer From unknown wallet to exchanges in the last 24 hours.
There have been three transactions in the last day. In the first two transactions, XRP was sent from an unknown wallet to Bitstamp.
while the third transactions 30,000,000 XRP worth over $10.23 million was transferred from an unknown wallet to Bittrex. Notably, a total of over $35 million in XRP was sent to exchanges, which could point to a sale or redistribution by whales.
A look at XRP’s long-term and short-term MVRV suggests some correction from lower levels, but it was still in negative territory. A recovery in the positive zone could act positively for XRP.
From an on-chain perspective, the XRP price could be preparing for some bearish action given the whale distribution. If the bears remain in control of the XRP price action, the coin could see a retest of the lower $0.3000 price level.
In case of a bullish price move, the $0.4500 and $0.4700 points will act as the next targets.
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