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XRP whales have shown renewed interest, accumulating a staggering $2.17 billion worth of tokens in just three days, igniting speculation of a breakout.
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Despite this significant build-up, mixed activity signals a cautious stance among traders, particularly with increasing inflow to exchanges.
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According to Santiment, “The increased whale accumulation could push XRP’s price to a bullish target of $3.50, yet simultaneous selling poses risks for a potential drop to $1.98.”
Whale activity surrounding XRP surges with $2.17 billion added in tokens, hinting at volatility ahead. Is a price breakout on the horizon?
XRP Whales Intensify Accumulations Amid Mixed Signals
In a striking turn of events, XRP whales have collectively acquired approximately $2.17 billion worth of tokens between December 25 and December 28. This build-up has raised optimism about a potential price increase as the year closes. Specifically, wallets holding between 1 million and 10 million XRP tokens increased their total balance from 4.85 billion to 4.95 billion. This increase implies the accumulation of an additional 100 million tokens within a mere three-day period.
Moreover, wallets containing between 100 million and 1 billion XRP have also expanded their holdings significantly, rising from 8.86 billion to 9.63 billion, marking a notable addition of 870 million tokens. At a current price of $2.50, these transactions represent a massive influx of capital into the XRP ecosystem, traditionally interpreted as a bullish indicator, igniting speculation that a breakout may be imminent.
However, despite strong accumulation, on-chain data from CryptoQuant suggests a more complex picture might be unfolding. The Whale to Exchange Flow metric—which tracks the activity of large holders moving funds to or from centralized exchanges—has seen a rise from 2,243 to 3,585 over the past three days. This implies an increased flow of XRP tokens into exchanges, indicating not just accumulation but also potential selling activity from some major holders.
While whale purchases are significant, the concurrent increase in exchange inflow adds an element of caution. The mixed activity could preserve bullish momentum; if whale selling persists, the market dynamics might shift considerably, raising concerns about a potential bull trap.
XRP Price Outlook: Potential Bull Flag and Target of $3.50
According to technical analysis from COINOTAG, the XRP/USD daily chart showcases a robust bull flag formation, a well-recognized bullish pattern indicating strength in the current price structure. The bull flag is composed of sequential upward movements interrupted by a consolidation phase, leading to potential price surges.
The formation typically begins with a significant price increase—forming the flagpole—followed by a consolidation period that outlines upper and lower parallel trendlines. Presently, XRP appears on the cusp of surpassing the upper trendline of this pattern, which, if achieved, could lead to a short-term target price of $3.50.
Nevertheless, it is crucial to monitor counterfeit signals; if major whale holders were to liquidate vast quantities of XRP, this bullish trend could quickly reverse. A drop below the lower trendline seen in the pattern could expose XRP to significant declines, potentially retreating towards $1.98.
Conclusion
In summary, the remarkable accumulation of XRP by whales suggests a tightening grip on the token’s price, hinting at a possible bullish breakout on the horizon. Nevertheless, potential selling pressures from these same whales introduce an element of uncertainty. Traders should remain vigilant and considerate of both accumulation patterns and external market indicators to navigate the upcoming price movements effectively. Staying informed is essential for leveraging the trends in this volatile crypto landscape.
