XRP might be gearing up to stage a recovery from the latest downturn, according to data from on-chain metrics and analytical tools.
Following the spike observed on June 13, XRP has been underperforming for the past few days. However, a mixture of buyer concentration and favorable price movements suggests the asset might aim for a recovery above the $0.50 territory.
XRP’s Bearish Situation
After two days of persistent gains, XRP skyrocketed to $0.5658 on June 13 following the Hinman docs release. This was XRP’s second-highest price this year, only below the $0.5850 price on March 29.
However, this bullish momentum was short-lived, as XRP faced opposition that battered it to a low of $0.5054. A slight recovery saw XRP close June 13 with a $0.5192 price, but this marked a 1.12% decline from the value it began the day with.
The bearish atmosphere spilled into the next day, with XRP plummeting to $0.4610. The asset eventually closed June 14 below the $0.50 price mark for the first time this month. This came on the back of a 7.53% loss.
Since then, XRP has failed to reclaim the psychological level at $0.50. However, the past three days have favored the asset, as it has printed three consecutive winning sessions.
XRP Gearing up for Recovery
Despite a massive drop observed today, metrics suggest an uptick in whale accumulation and potential recovery. Notably, a massive drop observed on June 16 saw XRP plummet to $0.4558, which resulted in a retest of the 200 Exponential Moving Average (EMA).
XRP immediately bounced back, leading to the recovery campaign witnessed in the past three days. The fact that XRP’s price touched the 200 EMA and staged a recovery indicates that the moving average acted as a significant support level.
When the price bounces off or finds support at this level, it suggests a strong buying interest and a potential area of demand. In addition, the bounce off the 200 EMA indicates that the uptrend will continue as buyers are stepping in to take control of the market. This could further push XRP to recover the $0.50 price.
Moreover, data from Santiment suggests that addresses holding between 1 million and 1 billion XRP have continued to increase their holdings since June 9. According to Santiment, these addresses have accumulated over 1.1 billion XRP tokens over the past week.
Meanwhile, XRP is currently changing hands at $0.4757, down 3.88% in the past 24 hours. Despite a 7-day drop of 9.34%, the asset has retained a gain of 1.17% over the past month. Analyst Dark Defender recently disclosed that XRP had broken a 777-day downtrend and is set for a rally to $3.3.