Crypto Whales and XRP Futures Traders Position for October: Analyzing XRP Price Trends and Predictions

Crypto Whales and XRP Futures Traders Position for October: Analyzing XRP Price Trends and Predictions

Crypto News – Despite substantial gains in the altcoin market this week, the price of Ripple (XRP) has remained steady in the $0.50 range. The XRP market struggled to reclaim the $0.55 level, even with a notable increase in overall altcoin market sentiment. This lackluster performance in September has unsettled important stakeholders.

Whale Investors Trim Holdings by 330 Million Coins This Week

On September 20, XRP briefly touched the $0.53 range, marking the monthly peak. However, this became a critical resistance point triggering a wave of profit-taking among crypto whales. For instance, whale investors holding 10 million to 100 million XRP had a cumulative balance of 3.36 billion coins on September 22. This figure has now dropped to 3.03 billion as of September 29, signifying a reduction of 330 million coins in just seven trading days.

At the current market price of $0.50, the 330 million coins recently sold by the whales amount to approximately $165 million. Such extensive selling by whale investors could negatively impact the XRP price for several reasons. Firstly, a significant outflow of coins from whales could lead to an oversupplied market if not met with equivalent demand. More importantly, this week’s substantial outflows have brought the whales’ cumulative balances lower than their holdings at the beginning of September. Consequently, selling off all the coins accumulated this month might inadvertently prompt other stakeholders to adopt bearish positions leading up to October 2023.

Speculative Traders Align with Bearish Sentiment

Further reinforcing the bearish outlook, critical data from the XRP derivatives markets indicates that speculative traders have recently mirrored the bearish disposition of the whales. This is evident in the rising XRP Open Interest while the whales continue to intensify sell-pressure. On Monday, XRP Open Interest stood at $321 million, and by September 29, this number had climbed to $374 million. An upward trend in Open Interest suggests that Futures traders are confident in the prevailing downtrend of the XRP price.

In summary, the alignment of bearish sentiment among whales and recent activities of speculative traders could potentially translate into a downtrend for XRP’s price in October and beyond.

Predicting XRP Price: Potential Reversal Towards $0.40

In October 2023, XRP’s price may sharply retract below $0.50 if whales continue to exert selling pressure. This prediction is supported by the Market Value to Realized Value (MVRV) ratio, which evaluates the net financial position of current XRP holders.

Currently priced at $0.50, investors who bought XRP within the past month hold approximately 2% unrealized profits. However, if a downward swing occurs, the majority may seek to limit losses to no more than 10%. Thus, the $0.49 support level could prove to be a significant hurdle for the bears. If the whales persist in selling, the XRP price could retreat towards $0.40 as anticipated.

Conversely, the bulls could regain control if the XRP price reclaims $0.60. Nevertheless, those aiming to secure a 10% profit margin might opt to close their positions once XRP reaches $0.55. If this crucial resistance level does not hold, the XRP price could swiftly reclaim $0.60.