Ripple (XRP) has had a tumultuous journey since its inception. After experiencing unprecedented growth and reaching a peak of $3.40 in January 2018, XRP faced a tough period that saw its price plummeting to as low as $0.18 in December 2019. The altcoin market's crash in March 2020 also did not spare XRP, which dipped to $0.12.
But, the tides seem to be turning for Ripple as it shows early signs of price recovery. While other cryptocurrencies have been struggling to maintain their bullish run, Ripple bulls have fiercely defended the $0.45 price support territory. This is an excellent sign for the cryptocurrency as it indicates that there is strong support at this level.
Despite the industry-wide contraction in the altcoin markets, XRP's large institutional investors are making a U-turn after taking profits in late March and early April. They are buying the dip, and this could be a crucial indicator of an impending price rebound. These whales have been adding 80 million coins to their wallet balances within the last two weeks, and at a current market price of $0.46, the newly added XRP coins are worth $36 million. This is a positive divergence between price and buying trends among whales, which reaffirms confidence in the underlying technology and products built on the network.
It's worth noting that this specific group of whales has successfully timed price rallies in the past, and it's only a matter of time before XRP enters another bullish push in price. If other investors interpret the negative market sentiment as a bullish signal to buy the dip, XRP's price could break above $0.60. However, investors should still approach the situation with caution and carry out thorough market analysis before investing.
The Ripple (XRP) ecosystem devolved into euphoria in late March when news broke about a potential victory in the infamous SEC lawsuit. This news gave hope to Ripple investors, who had been worried about the lawsuit's potential negative impact on XRP's price. However, on-chain indicators now show that the market euphoria may be over.
As of Apr. 24, XRP Weighted Sentiment sits at -0.57, after hitting its lowest low since Feb 2. Generally, Weighted Sentiment tracks the market perception of a particular asset by comparing the ratio of positive social media mentions to negative ones. When Weighted Sentiment declines to a new local low, it typically signals an impending reversal of an ongoing bearish trend. This indicates that the market sentiment towards XRP is approaching a two-month low, and investors should be cautious.
In conclusion, Ripple (XRP) shows early signs of price recovery as bulls fiercely defend the $0.45 price support territory. The cluster of large investors holding 1 million to 10 million XRP coins have been buying the dip, which is a crucial indicator of an impending price rebound. However, investors should still approach the situation with caution, as market sentiment towards XRP is approaching a two-month low. Despite this, XRP's underlying technology and products built on the network have a solid foundation, and XRP could see a bullish push in price in the coming days.
It is important to note that the information provided in this article is for educational and informational purposes only and should not be construed as financial advice. Any investment decision made based on this information is solely at your own risk. Always conduct thorough research and analysis before making any investment decisions.