Ripple Struggles Below $0.60 As Whales Dump 140 Million XRP In Seven Days

• Ripple whales holding 100 million XRP and more dumped 140 million tokens in seven days.
• Retail XRP investors have been accumulating the coin over the same time frame.
• XRP is slipping below support at $0.60, trading at $0.5950 at the time of writing.

Ripple (XRP) posted a second straight session of losses on Monday, falling below the key psychological support of $0.60 as investors with large wallets appear to have engaged in a wave of selling, prompting a correction in the price of XRP’s native token Ledger.

Daily Market Reasons: Ripple on-chain metric shows sales by whales

• Santiment data shows that XRP investors holding 100 million or more tokens reduced their portfolio by 140 million coins in a seven-day time frame from August 19th to August 26th. price influence increases selling pressure.
• However, as whales shed their holdings of XRP tokens, retail investors piled into altcoins. This is probably one of the factors helping to reduce the selling pressure on XRP. The supply distribution chart below shows the change in XRP holdings of investors in different categories.

XRP Supply Distribution

• Generally, a decline in whaling is followed by a correction in the price of the asset, as seen in previous cases in the last six months. It remains to be seen whether the recent decline will lead to a steeper correction for XRP.
• The Network Realized Profit/Loss (NPL), which is the net profit/loss of all assets sold on a given day, also suggests that investors are choosing to sell XRP to make gains. Positive increases in NPLs suggest that investors sold at a profit on average, while negative values ​​represent that traders made losses.
• Between August 19 and 26, XRP traders consistently made profits of around $35.5 million, according to Santiment data. Usually, consistent profit taking increases the selling pressure on the altcoin, thus negatively influencing its price.

Realized profit/loss net

• Ripple CEO Brad Garlinghouse recently shared the speaker lineup for the flagship annual event Ripple Swell 2024. The upcoming event is another key market driver for the altcoin, as XRP prices have seen increased volatility before and during the event.

Technical Analysis: XRP Loses Key Support

Ripple is currently in a downtrend for several months. The altcoin dropped significantly from a July 13, 2023 high of $0.9380 to a July 5, 2024 low of $0.3823. It has since recovered somewhat, trading in a sideways trend for the past month. In the event of a correction, XRP could wipe out another 12% of its value and sweep liquidity to $0.5188, the lower bound of the fair value gap (FVG) seen on the XRP/USDT daily chart.

The MACD (Moving Average Convergence Divergence) momentum indicator is flashing green histogram bars above the neutral line, suggesting that XRP has underlying positive momentum. However, the Relative Strength Index (RSI) is reading 52.80 on the daily time frame, close to neutral levels.

Traders need to watch the signal line and the MACD line for a crossover. If the MACD line crosses below the signal line, it could give a sell signal.

XRP/USDT Daily Chart

Looking to the upside, XRP could extend gains to the fair value gap that spans between $0.5970 and $0.6217.