There are now two key factors that can drive XRP to $4 after on-chain data revealed that whales have increased their XRP holdings.
The recent market downturn led many investors to exit the XRP space, but on-chain data suggests that larger investors, or “whales,” took this opportunity to significantly increase their holdings of XRP.
This accumulation, combined with the formation of a bull flag pattern, may position XRP for a rise to $4.
According to data from Santiment, whales holding between 1 million and 10 million XRP collectively acquired an additional 100 million XRP tokens from December 7 to 10, coinciding with a 27.2% price drop from $2.61 to $1.90.
Notably, these whales did not reduce their holdings during this decline; instead, their total balance increased from approximately 4.71 billion XRP to around 4.80 billion, reflecting an injection of around $200 million into the asset.
This accumulation trend has been consistent over the past month.
For instance, in mid-November, these whales held 3.71 billion XRP. Now, with their holdings reaching 4.8 billion, they have added about 1.1 billion XRP within just 30 days, while the asset’s price climbed from roughly $0.50 to $2.87.
Interestingly, when XRP hit a seven-year high of $2.87 in early December, these whales took some profits, which contributed to a slight decrease in their holdings.
However, they quickly capitalized on the price dip to buy more XRP at lower levels.
These strategic moves are starting to yield results, as XRP’s price has rebounded to $2.43 following the recent crash.
On the technical side, while many market participants are optimistic about a potential uptrend, indicators suggest that XRP may experience another bearish phase before continuing its ascent.
Analyst Ali Martinez pointed out that although XRP’s price is forming a bull flag, the TD Sequential indicator on the four-hour chart has issued a sell signal.
This suggests that XRP could face additional corrections before making a significant breakout beyond the $2 mark.
Martinez believes that the anticipated run towards $4 will follow this expected pullback.
He noted that the asset is currently forming a fourth bullish pennant, which historically has led to substantial price increases.
For example, previous movements saw XRP rise from $0.69 to $1.10, followed by corrections, before reaching $1.50, and eventually peaking at $2.87.
With the current pullback in play, the next upward movement is projected to push XRP towards $4.40, according to Martinez.
As of now, XRP has experienced a 4% dip, reaching lows of $2.30 after hitting $2.46 yesterday.
This dynamic interplay of whale accumulation and technical patterns could set the stage for XRP’s significant price movement in the near future.
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