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The price of Ripple (XRP) may have to wait a while before breaking out, and a sharp increase in price could be seen.
This is due to investors’ uncertainty about whether to profit through HODLing or to sell.
Ripple Investors Not Optimistic The XRP price might be the first to suffer skepticism from altcoin investors, as they have shown considerable bearish sentiment. Since December 2023, the number of active addresses has been declining.
A drop in engagement combined with a price increase often creates a bearish bias in the market. This bias sends out a sell signal, which is not a good sign for price trends. The same is true for XRP, as there is an expectation for a price breakout, but investors trading on the network are absent.
Further signs of this sentiment are evident among whale holders, who have been noticeably bearish for the past two weeks. It is well-known that these large wallet holders have a significant impact on price and its behavior.
Their accumulation drives up prices, while their sell-offs lead to price drops. Currently, XRP whales are selling off, having disposed of over 300,000 XRP in the past two weeks.
This supply is valued at over 156 million dollars, accounting for more than 4% of their total holdings of 64.4 billion XRP.
Such sell-offs are an extremely bearish signal for the XRP price, and the altcoin may suffer consequences.
XRP Price Prediction: A Challenging Future Ahead At the time of writing this article, XRP is trading at $0.53, above the 23.6% Fibonacci retracement level of $0.51. Moving within an ascending triangle, if a breakout occurs, the altcoin’s target is a 12% rise. This could lead to Ripple’s native token breaking through the 38.2% Fibonacci retracement level.
However, given the factors mentioned above, the likely outcome will be bearish. The XRP price may fall to the lower trend line of the pattern and could also test the 23.6% Fibonacci level.
But if a breakout does occur, the aforementioned bullish outcome could also affect the future of XRP prices. This is crucial as it would enable XRP to bounce back further and recover recent losses.
At the same time, this would invalidate the bearish arguments.
Sentiment: Neutral
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