- XRP has crashed by more than 20% on the weekly timeframe.
- Santiment says that there are currently 221 addresses holding between 10 million and 1 billion XRP and that these addresses now hold a combined 16.13B tokens worth $8.71B.
- XRP is currently under the $0.5 resistance and its 200-day EMA.
- The 200-day EMA is one of the most powerful moving averages on any chart and can prove quite difficult to break.
- Ripple is down by more than 50% from its $0.96 post-victory high.
Bitcoin entered a severely bearish phase late last week and carried this energy through the weekend, and into this week.
Naturally, many other cryptocurrencies followed suit, after Bitcin fell from around $29,000 to less than $25,000 on 17 August.
At the time of writing, the market is yet to show any particular signs of recovery.
Ripple in particular, took a massive beating and crashed by more than 20% in the weekly timeframe.
At the moment, this cryptocurrency still has a pretty massive 18% weekly dip to get over, according to CoinMarketCap.
But what are the chances that XRP gets back up fairly quickly, and how soon can this happen?
Ripple was, after all, the star cryptocurrency of July, and more than doubled in a single day, after Ripple’s partial victory over the SEC.
Will the XRP bulls pick up where they left off, or will this cryptocurrency continue to grovel?
XRP Shows Impressive Signs Of Recovery
According to the blockchain analytics platform, Santiment, XRP may be showing some pretty impressive recovery patterns.
In a recent tweet, Santiment opined that these recovery signs are particularly strong with the bulls.
Santiment says that there are currently 221 addresses holding between 10 million and 1 billion $XRP and that these addresses now hold a combined 16.13B tokens worth $8.71B.
This is impressive because if the whales are still this bullish on Ripple, it means that a fairly swift price correction and the rally may not be far-fetched at all.
Can These Resistances Keep XRP Down?
In the chart illustrated below, we can see two things:
- Ripple is currently under the $0.5 resistance (blue horizontal line)
- Ripple is also under its 200-day EMA (red line)
Why are these two resistances important?
First of all, the 200-day EMA is one of the most powerful moving averages on any chart and can prove quite difficult to break.
Secondly, the $0.5 resistance is a psychological zone.
Ever since Ripple broke below in May 2022, the cryptocurrency struggled for more than a year underneath.
XRP was only able to break above again, with the hype from Ripple’s victory in court.
This validates $0.5 as a very strong resistance. And combined with the 200-day moving average, the Ripple bulls may have their work cut out for them, as it is.
Ripple is down by more than 50% from its $0.96 post-victory high. However, as illustrated above, the long tail of the August 17 candle indicates strong rejection and validates $0.427 as a strong resistance zone.
This zone may present itself as a launchpad, or as a base for the Ripple bulls to push back against the bears and break through the 200-day EMA, and the $0.5 zone again.
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