- Ripple whales holding 100 million and a higher volume of XRP tokens are buying the dip in June.
- Active addresses decline by nearly 40% in June, down to 19,500 on June 11.
- XRP wipes out nearly 2% of value on Tuesday, down to $0.4885.
Ripple (XRP) whales in different segments holding 100 million and higher tokens have added to their holdings during the recent dip. XRP price has been down nearly 6% since June 1, and large wallet investors are buying the dip.
Ripple has noted a decline in its on-chain activity amidst the price correction.
Daily Digest Market Movers: Ripple on-chain activity declines in June
- The active addresses metric is considered an indicator of a blockchain network’s usage. The metric could see a correlation with price as higher active addresses typically mark periods of increased demand.
- Ripple’s active addresses dropped nearly 40% in June, down to the 19,500 level on June 11, as noted by Santiment’s on-chain intelligence tracker. The decline fuels a bearish narrative for XRP.
XRP active addresses vs. price
- Ripple’s supply distribution metric shows that large wallet investors in three segments, holding between 1 million to 10 million; 100 million to 1 billion and higher volume of XRP tokens have added to their wallets in June.
- The XRP volume held by the three segments of whale wallets increased by nearly 2% between June 1 and 10, as seen in the chart below.
XRP whale supply distribution
- On-chain metrics paint a bearish picture for XRP, fueling a narrative of correction in the altcoin’s price.
Technical analysis: XRP poised for nearly 7% correction
Ripple is likely to correct another 7% in its decline, as seen in the XRP/USDT 1-day chart. The altcoin wiped out nearly 2% of its value on Tuesday. At the time of writing, the XRP price is $0.4876 on Binance.
Ripple could find support at the June 7 low of $0.4508, down nearly 7% from the current price level. $0.4665, the April 19 low of XRP, could act as another support in Ripple’s decline.
The Relative Strength Index (RSI) is down to 35.03, dropping towards the oversold level at 30. The signal line crossed above the Moving Average Convergence Divergence (MACD) on Thursday, June 6, in a bearish move. Red histogram bars below the neutral line in MACD support a bearish thesis for Ripple.
XRP/USDT 1-day chart
Ripple could see a daily candlestick close above the June 10 high of $0.5060; this could invalidate the bearish thesis. XRP could target the 50% Fibonacci retracement, at $0.5310, of the decline between the April 9 top of $0.6431 and the April 13 low of $0.4188.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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