- Ripple (XRP) whales have been buying the dip in June, increasing their holdings despite a nearly 40% decline in active addresses and a 6% drop in price since June 1.
- Technical indicators suggest further potential decline, though significant whale accumulation hints at long-term confidence in XRP.
In June, Ripple (XRP) has been on a turbulent ride, with a notable decline in both price and on-chain activity. However, amidst the downturn, Ripple whales—those holding 100 million or more XRP tokens—have seized the opportunity to buy the dip, indicating a potential strategic accumulation despite the bearish trends.
Active Addresses Plummet by 40%
A critical indicator of blockchain network health, the active addresses metric, has shown a sharp decline for Ripple. As of June 11, the number of active addresses has fallen by nearly 40%, reaching a low of 19,500. This decline suggests a waning interest or engagement among XRP users, correlating with the recent price drop. Generally, a decrease in active addresses can be indicative of reduced demand, further fueling a bearish outlook for the cryptocurrency.
Daily Digest Market Movers: Ripple On-Chain Activity Declines in June
Ripple’s on-chain metrics present a mixed picture. While the active addresses have decreased significantly, whale activity tells a different story. Large wallet investors, specifically those holding between 1 million to 10 million, 100 million to 1 billion, and even larger volumes of XRP, have increased their holdings by nearly 2% from June 1 to June 10. This accumulation by major investors might be seen as a vote of confidence in XRP’s long-term potential, despite the current bearish market sentiment.
Technical Analysis: Further Correction Expected
From a technical perspective, XRP appears poised for further correction. On Tuesday, XRP’s value dropped nearly 2%, settling at $0.4876 on Binance. The altcoin has been on a downward trajectory since June 1, losing about 6% of its value. Technical indicators suggest that XRP might experience an additional 7% decline, potentially finding support at the June 7 low of $0.4508 or the April 19 low of $0.4665.
The Relative Strength Index (RSI) is currently at 35.03, approaching the oversold threshold of 30. Moreover, the Moving Average Convergence Divergence (MACD) indicates a bearish trend, with the signal line crossing above the MACD line on June 6. The red histogram bars below the neutral line further support the bearish outlook.
However, if XRP manages to close above the June 10 high of $0.5060, it could invalidate the bearish trend. In such a scenario, XRP might target the 50% Fibonacci retracement level at $0.5310, between the April 9 high of $0.6431 and the April 13 low of $0.4188.
While Ripple’s on-chain activity paints a grim picture, the strategic buying by large investors suggests a potential bullish undercurrent. As XRP navigates this correction phase, the market will keenly watch for signs of recovery or further decline.
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