Ripple (XRP) price has remained stable in the $0.50 range despite major gains in altcoin markets this week. crypto analyst Ibrahim Ajibade, hen-chain examines through data how crypto whales and XRP Futures traders are positioned for October.
Altcoin whales sold 330 million XRP this week
The XRP price briefly exceeded $0.53 on September 20, reaching a monthly peak. Once it reached this key resistance level, a group of whales began aggressively booking profits. Indicatively, Whale investors holding 10 million to 100 million XRP had 3.36 billion coins in cumulative balances on September 22. However, the chart below shows that this figure dropped to 3.03 billion as of September 29. This means that they reduced their balance by 330 million coins in the last seven trading days.
At the time of writing price of $0.50, the 330 million coins recently sold by whales are worth approximately $165 million. For several reasons, it is possible that such intense selling by whale investors could have a negative impact on the altcoin price. First, a large exodus of whales could lead to an oversupplied market if not met by a commensurate demand. More importantly, this week’s 330 million outflow left the whales’ cumulative balances lower than they were at the beginning of September. Therefore, by selling all the coins they have accumulated this month, whales may unintentionally influence other stakeholders to take a bearish position before October 2023.
Speculative yinvestors drop He’s betting big on it!
Confirming this bearish prediction, key data points in the XRP derivatives markets show that speculative investors have been mirroring the bearish trend of whales lately. As an indication of this, XRP Open Interest has been on the rise this week as whales intensify the selling pressure. The chart below shows XRP Open Interest was $321 million on Monday. And as of September 29, this figure has increased to $374 million for the altcoin.
Open Interest is the sum of all derivative contracts outstanding for an asset across various Futures trading platforms. The upward trend in Open Interest means that Futures traders are confident that the current XRP price trend will remain dominant. As a result, it is possible that the bearish sentiment surrounding whales and the recent activity of speculative traders could lead to a downward trend in altcoin prices in October and beyond.
XRP price prediction: towards $0.40 One return possible!
If the whales intensify the selling pressure in October, it is possible for the XRP price to decline sharply below $0.50. The Market Value – Realized Value (MVRV) ratio evaluates the net financial position of current XRP holders. Therefore, this metric also supports this prediction. The altcoin price is currently hovering above the $0.50 level. Meanwhile, investors who purchased XRP in the past month have an unrealized profit of approximately 2%.
However, if a decline begins, it is possible that the majority will want to avoid losses greater than 10%. However, the $0.49 support level poses a major hurdle for the bears. However, if whales continue to sell, it is possible that the XRP price will decline towards $0.40 as predicted.
Conversely, if the XRP price recovers $0.60, it is possible for the bulls to regain control. However, those who want to make a profit with a 10% margin are likely to close their positions when the altcoin reaches $0.55. However, if this vital resistance level fails to hold, the altcoin price is likely to quickly reclaim $0.60.
The opinions and predictions in the article belong to the analyst and are definitely not investment advice. cryptokoin.com As, we strongly recommend that you do your own research before investing.
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