XRP has struggled to break past the mid-range resistance level of $0.585, falling by 5.35% over the past three days, from $0.6 to $0.568. Despite this short-term bearish trend and a year-long period of range-bound trading, some on-chain metrics offer a glimmer of hope for traders.
A recent report highlights that XRP whales took advantage of the recent price dip, adding over 50 million tokens to their holdings. Bitcompare analyzed additional metrics to determine whether XRP investors have more good news on the horizon.
Whale to Exchange Flow Hits a New Low Since 2020
The Whale to Exchange Flow metric, which tracks the volume of tokens transferred from whales to exchanges, recently reached its lowest level since October 2020. A spike in this metric usually coincides with significant price movements. The recent low suggests a long-term bullish outlook, buoyed by reduced selling pressure from whales.
Meanwhile, the daily active addresses metric has remained stable over the past two months, with occasional weekend spikes that were not sustained. Similarly, network growth has been steady since mid-July, indicating a healthy and growing network, although daily activity has not increased significantly.
Additionally, the MVRV ratio shows that XRP remains an undervalued asset, with 30-day holders experiencing minor losses.
Throughout August, XRP bulls have made several attempts to push prices beyond the $0.6 resistance zone. However, their efforts have been unsuccessful, with the highest point reaching only $0.634. Over the past three weeks, Open Interest has fluctuated between $430 million and $490 million, indicating that while each breach of $0.6 attracts bullish speculators, the demand has not been strong enough to turn this resistance into support. Recent declines in funding rates also highlight reduced bullish conviction in the market.
Overall, while the short-term sentiment appears to fluctuate between bullish and bearish, the long-term outlook remains positive, supported by whale activity and stable network metrics. However, investors should remain patient.
