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XRP price shows a massive influx of active wallets, should Investors be concerned?

Analytics

www.fxstreet.com 12 August 2022 00:16, UTC
  
Reading time: ~2 m

  • Ripple’s active addresses have increased by nearly 6x on multiple sets of occasions throughout the summer. 
  • Ripple price hovers just above a breached consolidative barrier, which is enticing traders to open a long positions.
  • Invalidation of the bearish view demands $0.48 holds as resistance.

XRP price is displaying optimistic technicals during the second trading week of August. Still, the odds of a Wall Street trap remain on the table.

XRP price could be a Wall Street trap

XRP  price currently auctions at $0.38 as the bulls have successfully breached a consolidative trend line. The display is quite monumental as the descending barrier has played a significant role on the XRP price since April 2022. Traders witnessing the breach should be drawing up trading plans as the technicals present a promising future.


Still, some on-chain metrics do not necessarily correlate with the bullish price action. Santiment’s Active Wallet’s indicator shows concerning signals amids the current 33% bull run since the June 18 lows at $0.28. 

On multiple occasions the indicator shows a significant influx of active wallets. This could be viewed as a contrarian bearish and merits reasonable doubt in the current Ripple uptrend. Perhaps Smart Money has been sneakishly placing sell limits while retail consume.

tm/xrp/8/11/22

Santiment Active Wallet Indicator


Ripple price looks bullish in the short term and previous outlooks have already been issued identifying key levels for bullish traders. Nonetheless a Smart money trap is still at play. Bears looking to place a bet can use the $0.48 barrier as a definitive line in the sand. If the bears conquer the trend, a breach towards $0.24 could occur, resulting in a 35% decline from the current XRP price.

tm/xrp/8/11/22 1

XRP/USDT 1-Day Chart

In the following video, our analysts deep dive into the price action of Ripple, analyzing key levels of interest in the market. -FXStreet Team


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