Ripple (XRP) Price Fails to Break $0.50: Will a Bigger Pullback Follow?

Ripple (XRP) price has mostly hovered between $0.46 and $0.48 over the past two weeks. While network participants are losing interest, on-chain data reveals that XRP whale investors could offer bullish support. Is the XRP price at risk of a bearish reversal?

Ripple’s (XRP) price has failed to break above the critical $0.50 resistance in the last weeks. Amid efforts from the whales to keep the bears at bay, the XRP price remains at risk of a potential pullback.

XRP Whales Are Looking to Ease the Bearish Pressure

While the XRP price trend has remained neutral, a cohort of price-savvy whales has started applying bullish pressure behind the scenes. Between July 2 and July 6, XRP whales holding 10 million to 100 million coins have added 280 million coins to their wallet balances.

XRP Price at Risk | Whales Wallet Balances, July 2023. Source: Santiment

With XRP prices currently sitting at $0.47, the fresh investment is worth approximately $131 million. With such a surge of large inflow in less than a week, the bullish whales could be looking to desperately ward off the risk of a major XRP price correction.

Retail User Activity is in a Downtrend

While the price-savvy whales have been piling on bullish pressure, the XRP retail market participants appear to be losing interest. According to on-chain data, XRP daily user activity has declined considerably this week.

The chart below shows that the XRP Ledger network registered 128,110 Active Addresses (7d) on July 5. Remarkably, this represents an 85% decline when compared to the recent high of 867,820 recorded a week ago on June 29.

XRP Price at Risk | Active Addresses (7d), July 2023. Source: Santiment

The Active Addresses (7d) metric evaluates changes in user activity by summing up the total number of addresses that carried out transactions on a blockchain network over a seven-day period.

When it drops, a bearish signal indicates that fewer mass market participants are performing economic transactions.

Considering this decline in transactional activity XRP price could struggle to attract sufficient demand to propel price out of the current neutral state.

XRP Price: Potential Risk of a Prolonged Stagnation at $0.46

XRP on-chain data currently flashes conflicting signals suggesting a prolonged stagnation around the $0.46 mark. The MVRV ratio corroborates this view.

The chart below shows that the majority of investors that bought XRP in the last 30 days are holding 2% losses. Given the neutral market sentiment, most of them will likely hold off until they break even $0.49 before they start selling.

However, if XRP makes it past that sell wall, the next resistance point could be $0.52.

XRP Price Prediction | MVRV ration, July 2023. Source: Santiment

Still, the bears are likely to put up a fight as they look to force a move toward $0.40. However, the bullish could intensify the buy-pressure to keep the price above $0.45 and avoid more than 5% losses.

However, if they do not have enough in the tank, it could put the XRP price at risk of slipping toward $0.40