While Ripple (XRP) has been keeping up with a sluggish market performance, staying within a stagnating liquidity range, it has surprisingly experienced a boost in whale activity. 

Will investors’ fondness of XRP move out the writing on the wall for the coin? The question remains open as we dive into Ripple’s on-chain dynamics. 

On-chain data for Ripple (XRP) derivatives presents a mixed picture. 

Regardless of a dubious price movement, XRP has indicated a dramatic surge in Open Interest rate and a spike in trading volume, marking the increased investment interest. 

By contrast, XRP netflows have been recording a strong downsurge for the last 4 months, indicating no correlation with Ripple’s price movements. 

Despite the bearish sentiment in the market, data from Whale Alert revealed that whales are stacking on XRP, acquiring nearly $300 million in XRP in the last 24 hours. 

What is more, XRP demonstrated a sharp uptick in Social Dominance. Still, the community’s waning interest, as reflected in declining social volumes, could be a response to its ongoing performance issues, indicating a cooling off in investor sentiment towards Ripple. 

The regressed Social Interest correlates with a recent Brad Garlinghouse’s statement, which cited that Ripple’s previously rumoured Initial Public Offering (IPO) is at low likeability, given the company’s legal disputes with the U.S. Securities and Exchange Commission (SEC). 

Ripple’s CEO pointed out that Ripple’s S-1 registration statement for an IPO requires SEC approval, yet he doubts a favourable outcome.

“Going public in the United States for Ripple right now doesn’t make any sense,” he went on.

As the fundamental factors indicate strong controversy, chart readings have foot in both camps as well. 

A closer look at the 1-day chart confirms that XRP’s price has been confined within a critical range, bounded by a key resistance at $0.55 and crucial support at $0.47, leading to prolonged sideways price actions. 

The pattern resembles Ripple’s moves from August to November 2023, before Ripple embarked on an impulsive bullish surge toward the $0.73 resistance, reclaiming the 100-day and 200-day moving averages (MA). Given that XRP is indicating similar dynamics at the writing time, a lasting upward trend might develop if buyers break past the critical zone. 

Still, as per the fundamental factors and the robust bullish pressure, the continuous rejections suits as a more realistic option in the near term.

The 4-hour chart proves the sentiment, marking low volatility and muted price action. XRP’s price has reached a narrow range, bounded by the 0.5 ($0.5310) Fibonacci level and the ascending wedge’s lower boundary at $0.51. 

A break below the pattern’s lower trendline could lead to a bearish retracement towards the static support at $0.48.

Conversely, if buyers breach the 0.5 Fibonacci level, the next target will be the 0.618 ($0.5574) Fibonacci level in the short term.

While Ripple (XRP) remains a highly controversial asset per its local market dynamics, whales’ optimism may hint at its potential breakout. Specifically, a break below support levels may confirm a bearish trajectory for XRP, yet a push above the moving averages will signal a bullish sentiment.