Earlier this month, Ripple’s (XRP) price dropped by 18% within three days. Since October 3, however, the token has stabilized, trading between $0.52 and $0.55.
While big market players are accumulating XRP, which could boost its value, it’s uncertain if this is enough to prevent the token from dipping below $0.50.
Ripple Bulls Show Support for the Altcoin
According to Santiment, addresses with holdings between 100 million and 1 billion XRP owned 9.63 billion tokens on October 17. That amount has since increased to 9.77 billion, indicating an accumulation of around 140 million XRP, valued at about $77 million.
Typically, when large investors accumulate tokens, it signals an expectation of a price increase. Conversely, a reduction in holdings often suggests an impending price drop. Given the recent accumulation, XRP could be poised to rise above $0.55.
Read more: XRP ETF Explained: What It Is and How It Works
Another factor supporting this prediction is the Funding Rate, which measures the difference between the mark price of perpetual futures and the index price, representing the spot price of the underlying asset.
When the Funding Rate rises, longs are paying shorts, signaling that traders are generally bullish. A decline in the rate indicates shorts paying longs, reflecting bearish sentiment.
For XRP, the Funding Rate is currently positive. If this trend continues, the altcoin’s price could increase, leading to potential profits for traders holding long positions.
