Whale XRP increases accumulation, will a recovery occur?

Ripple (XRP) has witnessed a 400% growth in network activity since the beginning of March. This upward trend may continue, especially as the U.S. Securities and Exchange Commission (SEC) recently withdrew its appeal against Ripple.

XRP's on-chain metrics indicate rising investor confidence

XRP whales have increased their holdings by an additional 10% over the past two months. Despite prices being suppressed by macroeconomic factors, the group of whales holding between 1 million and 10 million XRP continues to accumulate, raising the total amount of XRP held to 5.81 billion XRP, equivalent to about 14 billion USD.

XRP Supply Distribution | Source: SantimentHowever, the whale group holding between 10 million to 100 million XRP shows a mix of distribution and accumulation during the same period.

Meanwhile, the network activity of XRP has skyrocketed since the beginning of March, with the number of daily active addresses increasing by more than 400% compared to February.

XRP Activity Address | Source: SantimentAdditionally, the Dormant Circulation index of XRP shows that investors have significantly reduced distribution activity in recent days. Although the price rose on Wednesday, investors remain relatively cautious.

The combination of these indicators shows an increasing optimistic sentiment towards the growth potential of XRP, especially after the SEC officially concluded its legal battle with Ripple.

However, this strong optimistic sentiment has not spread to the XRP derivatives market, where the funding rate is negative. This could be part of the reason why XRP is correcting after rising about 14% on Wednesday.

Funding rate of XRP | Source: CoinglassIn a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse expressed optimism about the potential launch of the XRP ETF fund in the U.S. in 2025.

"I have a strong belief in the XRP ETF," Garlinghouse said. "I think these funds will be traded in the second half of this year."

The SEC has recently delayed its decision on several XRP ETF filings from asset managers, including Bitwise, Franklin Templeton, and 21Shares. Garlinghouse also mentioned that the digital asset portfolio in the U.S. may include XRP.

XRP may bounce back from the upper boundary of the downtrend channel

Data from Coinglass shows that XRP has seen $13.86 million in liquidations over the past 24 hours. The total amount of Long and Short positions liquidated was $11.68 million and $2.18 million, respectively.

XRP was rejected at the resistance area near $2.60 and dropped 4% during the day, reflecting the overall correction of the cryptocurrency market.

XRP/USDT Daily Chart | Source: TradingViewIf XRP bounces from the upper boundary of the descending parallel channel it previously broke out of, the price may retest the resistance level of $2.60. If it breaks above $2.60, this token could target the highest resistance level in seven years at $3.40. However, to achieve this, XRP needs to overcome significant barriers at $2.78 and $2.95.

Technical indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are showing signs of crossing below the average level, indicating that the bullish momentum is weakening.

If the daily closing price falls below the upper boundary of the channel, the bullish scenario will be invalidated and XRP may find support at the level of $1.96.

You can check the price of XRP here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

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