XRP went on a massive run after the August 19 breakout, surging from the key psychological support at $1.00 to a multi-month peak at $1.70, all within the span of just 72 hours.

However, the subsequent rejection was quite violent, and the token lost a few crucial support levels on the way down, including $1.60, $1.50, and, most recently, $1.40. It now sits below the last one, and some on-chain data suggests more pain is ahead.

Activity Slumps

Perhaps the most evident reason behind XRP’s major breakout several weeks ago came from whales. These large market participants ‘went crazy’ in their accumulation efforts, scooping roughly 400 million tokens within a week or so. In addition, network activity spiked, showing increased interest in the token and the blockchain behind it.

The same investors have turned on the cross-border token, according to more recent data shared by Ali Martinez. Citing Santiment Intelligence, he noted that the “pullback appears to be driven in part by profit-taking, with whales selling or redistributing roughly 90 million XRP over the past week.”

Naturally, such moves from the largest ecosystem participants have a two-fold effect. First, they increase the immediate selling pressure. Second, their example can be followed by retail investors who tend to copy whales.

The second major warning comes from the network activity. Daily active addresses have plunged by over 90% from the peak during the rally of 388,492 to 38,163. According to Martinez, this signals a “significant drop in participation during the correction.”

The analyst added that XRP has found “critical support” near $1.35, where 2.29 billion tokens were previously traded. If the asset maintains that level, it could rebound toward $1.60 or even $1.68 next.

600% Rally in the Making?

Another popular analyst, Celal Kucuker, was even more optimistic about XRP’s future. They added that the token’s rally to its previous all-time high began when it stood 12% below its 50-day moving average. Current data shows that it trades at the same point now.

As such, the cross-border token could reignite another major run if it manages to reclaim the 50-day MA soon. The analyst predicted a massive 600% move based on historical performance and the Fibonacci equality. If Kucuker’s prediction comes to fruition, it could push XRP to over $9, more than double its current all-time high.

Source: CryptoPotato