NOIDA (CoinChapter.com)—Ripple whales have started accumulating the project’s native token, XRP. The whales’ accumulation frenzy followed the Federal Reserve’s announcement on June 12 that it would hold interest rates steady.
Furthermore, the US central bank noted that it plans to cut interest rates only once in 2024. Earlier in the year, the Federal Reserve had announced plans for three rate cuts.
Whales holding between 10 to 100 million XRP showed the most volatility, suggesting active trading or redistribution of assets within this range. Meanwhile, those holding over 1 billion XRP have steadily increased their holdings since mid-April, indicating a deliberate accumulation.
This trend signifies a strategic positioning by the largest holders, potentially anticipating positive market developments or future price gains.
Smaller whales holding between 1 and 10 million XRP have seen a gradual decrease in their holdings, particularly from December to late March, followed by more variability.
The whale wallets with 100 million to 1 billion XRP tokens stabilized after experiencing a notable drop in early April. The Fed’s talk of rate cuts, even if it is only one in 2024, could be why whales are accumulating XRP tokens.
Lower interest rates generally increase liquidity, encouraging investment in riskier assets such as cryptocurrencies.
Despite Ripple whales accumulating the project’s native token, XRP price dropped nearly 10% WTD to reach a daily low near $0.46 on June 14.
If the downtrend continues, XRP price could drop to the support near $0.45. Moreover, the failure of the immediate support level could drop to the support level near $0.42 before recovering.
On the other hand, the Ripple whale’s accumulation frenzy could help XRP price to reach the resistance near $0.5. Furthermore, breaking and consolidating above the immediate resistance could help the Ripple token price rise to the 50-day EMA (purple wave) resistance near $0.52.
The relative strength index for XRP remained neutral, with a score of 32.22 on the daily charts. The RSI trendline is moving south toward the oversold region, which traders usually consider a bullish reversal signal.
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