XRP‘s price surged by 30% last week following the court ruling in favor of Ripple in the case against the SEC. However, this increase did not push the price to the anticipated high levels, leading major investors (whales) to sell their XRP holdings. On-chain movements indicate a significant correction in XRP’s price in the coming days.
Ripple’s XRP Price Surge Remains Limited
XRP’s price rose by 30% on August 7, reaching $0.644, but this level was lower than the peak of $0.658 recorded on July 30. This lower peak indicates that buyers could not push the altcoin to higher levels, suggesting weak demand. Indeed, XRP’s price has dropped by 9% since reaching the peak of $0.644.
Currently trading at $0.585, XRP is expected to give back its gains from the 30% rally. A potential rise at the beginning of the week could push XRP to test the resistance level of $0.613 again. However, a rejection candle here could signal buyer exhaustion, leading the price to retest the support range of $0.560 to $0.555.
On-Chain Data Shows Bearish Trend for XRP
Technical analyses show a bearish trend for XRP price, and on-chain data supports this view. According to Santiment’s “Supply Distribution By Balance” metric, wallet addresses holding between 1 million and 10 million XRP accumulated 230 million XRP between July 17 and August 2, anticipating a favorable court ruling for Ripple.
These wallet addresses sold 150 million XRP by August 7, reducing their balances to 3.8 billion. Additionally, the Whale Transaction Count metric, which tracks transfers worth $100,000 or more, confirms that these whales sold during the 30% price surge on August 7.
Technical and on-chain data indicate that major investors sold their assets following the conclusion of the case between the SEC and Ripple. While a short-term correction is highly likely, if Bitcoin‘s (BTC) price continues its upward movement, this correction could be more limited than expected or might not occur at all.
