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XRP faced an 8% decline last week, reaching its lowest point since November 13, 2023. This highlights a critical support level at $0.5930. This level has consistently acted as a fortress for the altcoin since November 2023 and has provided optimism for a potential rally in XRP’s price.
Smart Money Accumulation: Big Wallets Fueling Recovery
In the midst of the recent decline, large wallet addresses holding between 10 million and 100 million XRP are strategically accumulating the altcoin. This trend reflects confidence among significant investors in XRP’s potential and encourages them to capitalize on the downturn for future gains.
When examining on-chain metrics, positive indicators for XRP’s recovery are emerging. A decrease in whale profit-taking activities and a revival in development activities indicate a favorable environment for the altcoin. The reduction in whale transactions valued over $100,000 and a decrease in whales selling XRP at a loss reinforce the idea of a turnaround in XRP’s fortune.
Moreover, the distribution model among market participants, especially those holding between 10 million and 100 million tokens, shows consistent accumulation during downturns and strategic distribution at local peaks over the last six months. This historical behavior, along with the likely accumulation of XRP by whales during the ongoing price decline, points to a potential repeat.
Development Activity and Recovery Signals
Development activity in XRP hit a six-month low on January 17, 2024, but a recovery has since been recorded. The revival in development activities acts as a significant factor contributing to the potential recovery in XRP’s price. As the altcoin’s ecosystem improves, a correlation between development activity and price recovery is becoming evident.
As XRP progresses on its recovery path, the convergence of on-chain metrics, whale behavior, and development activity paints an encouraging picture. The altcoin’s ability to hold the $0.5930 support level and overcome resistance points will be pivotal in confirming its resurgence. At the time of writing, XRP is trading at $0.526.
