Are XRP whales responsible for the alt’s restricted price movements?
XRP remained subdued while most of its large cap counterparts achieved significant upside in the last few days. The default explanation for a long time been that investors remain uncertain due to the ongoing Ripple-SEC lawsuit. However, this might not necessarily be the case as revealed by investigations on on-chain activities.
XRP’s had a $0.35 price tag at press time, which is roughly 6.6% up in the last 24 hours. The token bottomed out just below $0.30 in mid-June after establishing a support level within the same price zone. It retested the same support line at the start of July, before the bulls took over. However, the XRP bulls lacked enough momentum to deliver strong upside like most of the other top cryptocurrencies.
Source: TradingView
The Relative Strength Index (RSI) stood was indicating a movement in the upward direction and stood just above the neutral 50 line at 52.87. The Money Flow Indicator (MFI) further stood at 31.98 and more inclined towards the oversold zone.
XRP’s on-chain metrics provide more clarity into XRP’s weird and subdued price action. The number of active addresses increased drastically between 26 and 29 June, peaking at 203,590 addresses by 27 June. In contrast, there were only 29,400 active addresses On 25 June, the next major spike in active addresses happened on 4 June with addresses peaking above 154,000 addresses.
Source: Santiment
The spike in addresses before the end of June resulted in significant downside. This suggests that the retail market was spoofed into selling and that is where the whales took advantage.
There were two major upticks in transaction volumes on 1 July. The first was for 1.45 billion while the second was for $2.14 billion. This was with less than 50,000 addresses. The
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