XRP, the native token of Ripple Labs, is showing signs of recovery after a recent market downturn. The cryptocurrency market experienced a sharp price decline on December 11th, but XRP appears to be bouncing back with support from whales (large investors) and long-term holders.
Whales Accumulate XRP During Dip
Whale movements suggest a potential buying opportunity. According to Whale Alert, a platform tracking large cryptocurrency transactions (formerly on Twitter and now on platform X), a whale recently transferred a significant amount of XRP. The transaction involved 22.08 million XRP tokens, valued at approximately $46.13 million, moving from Binance, a major cryptocurrency exchange, to an unknown wallet. This significant purchase indicates that some whales are taking advantage of the recent price drop and accumulating XRP.
🚨 🚨 22,088,806 #XRP (46,138,483 USD) transferred from #Binance to unknown wallethttps://t.co/aSfrkBhjY2
— Whale Alert (@whale_alert) December 10, 2024
Long-Term Holders Remain Confident
Despite the price volatility, long-term XRP holders are demonstrating confidence in the token. On-chain data reveals that these holders have withdrawn a substantial $159.69 million worth of XRP from exchanges, even during the market dip. This withdrawal suggests a long-term investment strategy and a belief in XRP’s future potential, regardless of short-term price fluctuations.
Technical Analysis Hints at Bullish Breakout
From a technical standpoint, XRP appears promising. According to AMBCrypto’s analysis, the token is forming a bullish flag and pole pattern on the daily timeframe. This pattern often precedes a significant price increase, suggesting a potential breakout is imminent.
XRP Price Prediction: Bullish with Room for Growth
Based on recent price action and historical trends, analysts predict that if XRP successfully breaks above $2.50 and closes a daily candle at that level, it could see a significant surge. An 80% increase to $4.50 is a realistic possibility in the coming days if this breakout occurs. The rising interest from whales and long-term holders further strengthens this bullish prediction.
While bullish sentiments prevail, there’s always the possibility of a price reversal. If the overall market sentiment turns bearish, XRP might experience a further decline to $2. However, as long as the price stays above $2, the bullish thesis remains valid.
Another positive indicator is XRP’s Relative Strength Index (RSI) currently at 64. This metric falls below the overbought territory, suggesting that XRP has room for growth before reaching a price correction.
At the time of writing (December 12th, 2024), XRP is trading around $2.44, reflecting a notable 5.5% gain in the last 24 hours. However, trading volume has decreased by 45% compared to the previous day, indicating a potential slowdown in investor activity.
Also Read: XRP Lawsuit Heats Up: Ripple Faces New Appeals Ahead of SEC Showdown
XRP’s recent price movements paint a picture of potential recovery. With whales accumulating, long-term holders remaining confident, and a bullish technical outlook, coin could be poised for a significant price increase in the near future. However, investors should remain cautious of market fluctuations and consider the potential downside risks before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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