The price of Ripple (XRP) has continuously disappointed investors, with the altcoin recording a decline since the beginning of the month. Moving forward, this crypto asset could experience a period of consolidation as investors give mixed signals.
Ripple Investors Seem to Be Hesitating
XRP price is recording mixed signs as whales attempt to kickstart a recovery while retail investors continue to retreat. Addresses holding between 1 million and 10 million XRP have purchased over 100 million XRP in the past 48 hours.
This accumulation of $47 million is crucial in kickstarting the recovery, as XRP price has been trending lower each day.
However, retail investors do not seem to share this optimism as they still maintain the downtrend. Their participation online remains minimal, as shown by the decline in active addresses.
Investors are likely to refrain from making transactions online because of the lack of returns. This divergence between price and daily active addresses (DAA) is sending out a “sell” signal.
If Ripple investors continue to retreat, the altcoin could encounter significant resistance in launching a recovery. This could neutralize whales' efforts to pull prices back.
XRP Price Forecast: Consolidation Phase
XRP price, trading at $0.474 at the time of writing, is hovering around the critical support level at $0.473. Despite massive accumulation from whales, the above-mentioned signs favor a sideways trend for this altcoin.
This will keep the crypto asset confined between $0.473 and $0.516. The latter price level coincides with the 23.6% Fibonacci retracement level, known as a support floor during bear markets. The chances of regaining this level are slim, but if this happens, XRP price could restart the recovery process.
Conversely, if the $0.473 support is lost, the altcoin may have to test the critical support at $0.460. Losing this support level will invalidate the bullish-neutral thesis, leading to further declines.
