XRP has been on a downward trajectory, shedding 21.72% of its value amid increasing selling pressure. However, fresh market analysis suggests that a shift in sentiment may be underway, potentially setting the stage for a price recovery. If this bullish momentum gains traction, XRP could build on last week’s gains and aim for a new local high.
Whales Drive Renewed Optimism
On-chain data reveals that XRP’s largest holders—whales controlling between 10 to 100 million tokens—have been accumulating significant amounts of the asset. According to Santiment, these high-net-worth investors have purchased 150 million XRP in the last 48 hours, amounting to a staggering $388 million. Historically, such large-scale accumulation has preceded major price rallies, as whales often consider current price levels a discount before an upward move.
Short Squeeze Triggers Market Shift
A wave of short liquidations in the derivatives market has further bolstered the case for a potential XRP rebound. Within the last 12 hours alone, a total of $2.83 million worth of short contracts have been liquidated, signaling that the market is shifting in favor of bullish traders. This phenomenon typically occurs when a rising price forces short sellers to close their positions, thereby fueling additional buying pressure.
Additionally, the OI-weighted funding rate—an indicator combining Open Interest and funding rate—currently sits at 0.0064%. A rising funding rate suggests that market participants are positioning for an upward move, reinforcing the likelihood of a sustained price increase.
Can XRP Hit $3.37?
Given the prevailing bullish sentiment, XRP could be on track to reclaim its previous high of $3.37, last seen on January 16. However, this level represents a major resistance zone, with $15.86 million in sell orders ready to trigger. Should market momentum persist, these sell orders may be absorbed, paving the way for even higher gains.
Adding to the excitement, former President Donald Trump recently highlighted Ripple’s U.S. expansion, potentially boosting retail demand. Moreover, speculation around a potential XRP Spot ETF approval in the U.S. could further solidify bullish momentum.
Also Read: XRP Price Poised for a Breakout? Key Buy Signal Flashes Again!
With whale accumulation, short liquidations, and growing institutional interest aligning, XRP may be gearing up for a significant breakout in the coming days.
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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