3 Bullish Reasons to Buy Ripple (XRP) This Week

XRP Price Analysis:

• Ripple (XRP) price dropped to $0.60 on Saturday, November 18, down 20% from its local top of $0.72 recorded just two weeks ago.
• While retail investors show weak hands, crypto whales have invested $12 million this week, capitalizing on falling prices to buy the dip.
• Critical on-chain data shows that Social Media mentions of XRP have dwindled considerably this week, indicative of a local market bottom and imminent trend reversal. widespread Fear, Uncertainty, and Doubt (FUD). 

Ripple (XRP) price tumbled toward $0.60 on Saturday, November 18, down 20% from its local top of $0.72 recorded just 10 days ago. On-chain data analysis weighs in on how recent trading activity among XRP’s large corporate investors could trigger an early rebound next week. 

Reason 1: Crypto Whales are Capitalizing on the Falling Prices 

XRP emerged as one of the biggest losers in the top 10 crypto rankings this week. But despite $XRP’s 20% price drop over the past 12 days, corporate investors continue to buy XRP. 

However, as of November 18, the whales have rapidly increased their holdings to 16.8 billion XRP. This implies that they capitalized on the falling prices to acquire 20 million XRP between November 6 and November 18. 

This buying frenzy among the big players could spur retail investors to halt the sell off long-positions at any moment. 

Reason 2: Months of Large Transactions Has Improved Market Liquidity 

Another major reason that could aid XRP’s quick price rebound is the rising spate of Large Transactions. According to the latest data pulled from Santiment, the XRP Ledger blockchain network recorded 113 Large Transactions on November 14, the highest since July 31. 

Firstly, Large Transactions contribute to the liquidity and depth of the market, making it easier for participants to buy or sell significant amounts without causing substantial price slippage. 

Secondly, the increased liquidity is attractive to high volume traders and investors. In effect, this could attract even more prospective corporate investors to join the buying frenzy in the coming weeks. 

If this thesis holds, it could be a precursor to a XRP price rebound next week. 

Lastly, as XRP prices dipped this week, crypto traders switched focus to other top-charting tokens like Dogecoin (DOGE), and Shiba Inu (SHIB). In effect, the media hype surrounding XRP has reduced significantly. 

In confirmation of this stance, Santiment’s chart illustrates that since rejecting at $0.72 on November 6, XRP’s Social Dominance has dropped from 3.86% to 1.5% as of Saturday November 18. 

This decline in Social Dominance can be crucial to XRP price action next week, for a number of reasons.

Secondly, when an asset is devoid of media hype, prospective new investors often see the current prices at a fair market value of the token. Hence, if investors consider the current decline in XRP media mentions as a signal to enter the market, XRP price could make a bullish reversal next week and beyond. 

In summary, the millionaire whales spotted buying XRP aggressively, the consistent rise in large transactions, and cooling media hype are 3 major bullish reasons to buy XRP this week.

However, the $0.58 area is a major reversal point. Although it’s unlikely within the current on-chain circumstance, but if the bears force a downswing below that territory, these 3 bullish indicators could be invalidated.