XRP Could Break Out From Descending Wedge as Whales Accumulate 120M and Open Interest Climbs

• Support and resistance: $2.73 support; $3.15, $3.38, $3.65 resistance levels

• Whales added ~120M XRP in 72 hours, signaling renewed accumulation

• Open Interest rose 3.43% to $7.58B, indicating increased leveraged positioning

XRP breakout: descending wedge and whale accumulation suggest a potential breakout; watch $3.15 close for confirmation. Read the analysis and trade plan.

Why is XRP’s wedge pattern important now?

XRP’s descending wedge is important because it compresses volatility around $2.73 support and primes price for a breakout if buyers can push above $3.15. The pattern, combined with whale accumulation and rising Open Interest, points to higher near-term volatility and a directional test.

What do derivatives reveal about XRP’s next move?

Open Interest rose 3.43% to $7.58 billion, showing traders are adding leveraged positions ahead of a potential move. Rising OI can magnify price swings, so a breakout could accelerate higher, while a failed breakout risks sharp liquidations to the downside.

How did selling pressure shape September’s XRP trend?

Since early September, XRP encountered sustained selling, with taker buy-sell ratios often below 1 on major exchanges. Brief buy attempts above 1 reversed quickly, keeping XRP in a bearish channel and draining demand during the month.

Is a breakout waiting to unfold?

XRP traded inside a descending wedge, a formation that often precedes bullish breakouts when compression resolves upward. The token held support near $2.73 while making lower highs, compressing volatility and increasing the chance of a decisive move if buyers step in.

The RSI at 47 shows neutral momentum with upside potential. A confirmed daily close above $3.15 could open targets at $3.38 and $3.65, while rejection would likely extend the selling bias.

Source: TradingView

120 million XRP purchase sparks optimism — why it matters

Whale investors injected renewed energy into XRP with about 120 million tokens accumulated within 72 hours, according to public on-chain watcher reports.

Large-scale accumulation often signals conviction from deep-pocket holders and can provide support during compressed price action. If whales keep accumulating, these flows could underpin stability and help test resistance zones.

That said, concentrated buying does not guarantee a breakout if broad market selling pressure remains dominant.

Source: Ali Martinez/X

Rising Open Interest could fuel volatility — what to watch

Derivatives data show Open Interest up 3.43% to $7.58 billion. This indicates fresh leveraged exposure entering XRP markets and raises the prospect of pronounced moves if momentum shifts.

Rising OI with increasing net long or short bias can lead to accelerated moves via liquidations. Traders should monitor funding rates, exchange flows, and orderbook depth to assess risk appetite.

Source: CoinGlass

Is a breakout truly on the horizon for XRP price?

September’s selling dominance created a bearish backdrop, but technicals and on-chain flows indicate a possible shift. Whale accumulation plus higher OI and a descending wedge set the scene for a breakout if buyers can overcome selling pressure.

Traders should focus on a validated daily close above $3.15 for bullish confirmation, monitor liquidity for potential liquidation cascades, and size positions appropriately for heightened volatility.

Frequently Asked Questions

What key levels define XRP bullish and bearish scenarios?

Support is at $2.73. A breakout scenario needs a daily close above $3.15 to target $3.38 and $3.65. Failure below $2.73 risks deeper downside and extended September-like selling pressure.

How should traders manage risk around the wedge breakout?

Use tight, defined stop-losses, scale position sizes, and watch Open Interest and funding rates. Rising OI increases liquidation risk, so avoid over-leveraging and set contingency exits.

Can whale accumulation alone spark a sustained rally?

Whale accumulation provides ammunition for rallies by reducing available supply, but sustained moves require broader market participation and improved volume across exchanges.

Key Takeaways

• Pattern: Descending wedge compresses volatility and primes market for potential breakout.
• On-chain flows: 120M XRP accumulation by whales shows concentrated buying interest.
• Derivatives: Open Interest at $7.58B increases the chance of volatile, amplified moves.

Conclusion

XRP breakout conditions are developing as whale accumulation and rising Open Interest converge on a descending wedge structure. Watch $3.15 for breakout confirmation and manage risk tightly given elevated derivatives activity. COINOTAG will continue monitoring on-chain and technical indicators and will update publishings as new data emerge.