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XRP’s recent breakout above $3 has attracted significant attention, with large investors steadily accumulating, signaling a potential surge towards $4.
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Despite some profit-taking, the altcoin’s strong support levels and bullish technical patterns suggest sustained upward momentum in the near term.
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According to COINOTAG analytics, whale wallets holding over 1 million XRP have reached an all-time high, underscoring confidence among major holders.
XRP price shows resilience amid profit-booking; whale accumulation and technical patterns point to a possible rally beyond $4.
XRP Price Dynamics and Key Support Levels
XRP recently encountered resistance near the $3 mark, prompting some profit-taking among traders. However, the altcoin’s pullback is expected to find critical support around $2.65, a level that could serve as a launchpad for renewed buying interest. This support zone aligns with historical price action, where buyers have previously stepped in to defend the asset.
Should XRP successfully hold above $2.65, it would indicate that bulls are attempting to convert this level into a firm base, increasing the likelihood of a breakout above $3. A sustained move past this resistance could propel XRP toward the next significant hurdle at approximately $3.40. Market participants should note that this level may attract selling pressure, but a decisive breach could pave the way for a rally toward $4.
Conversely, a failure to maintain support above the 20-day exponential moving average (EMA) near $2.49 could signal a consolidation phase, potentially confining XRP’s price within a $2 to $3 range for an extended period.
Technical Indicators and Whale Activity Supporting the Rally
On the shorter timeframe, XRP’s 4-hour chart shows the price currently testing the 20-EMA as support. While this is a positive sign, the Relative Strength Index (RSI) has formed a negative divergence, suggesting momentum may be weakening in the short term. Traders should watch for a decisive bounce off the 20-EMA to confirm continued buying interest.
Supporting the bullish outlook, on-chain data from Santiment reveals that the number of whale wallets holding over 1 million XRP has surged to a new record high of 2,743. This accumulation by large holders often precedes significant price moves, reflecting institutional confidence and a potential catalyst for further upside.
Chart Patterns and Expert Insights on XRP’s Potential
Veteran trader Peter Brandt identified a “highly rare continuation compound fulcrum” pattern forming on XRP’s chart, a technical setup that historically precedes strong upward trends. This pattern reinforces the possibility of XRP reaching $4.47, a target that aligns with the broader bullish sentiment observed among market participants.
Such chart formations, combined with robust whale accumulation and solid support levels, create a compelling case for investors to monitor XRP closely for potential entry points during dips.
Market Sentiment and Future Outlook
Market sentiment remains cautiously optimistic as traders balance profit-taking with ongoing accumulation. The interplay between technical resistance at $3.40 and support near $2.65 will likely dictate XRP’s near-term trajectory. Investors are advised to watch volume trends and on-chain metrics for confirmation of sustained momentum.
Given the current indicators, XRP could experience a period of consolidation before attempting a decisive breakout. Staying informed on whale activity and technical developments will be crucial for those seeking to capitalize on this potential rally.
Conclusion
XRP’s recent price action reflects a healthy market dynamic characterized by profit-booking and strong underlying demand from large holders. The altcoin’s ability to maintain support around $2.65 and overcome resistance at $3 and $3.40 will be critical in determining its path forward. With expert analysis highlighting rare bullish patterns and record whale accumulation, XRP remains a noteworthy asset for investors monitoring the evolving crypto landscape.
