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Whale activity has driven XRP to unprecedented heights, catalyzing a breakout rally and creating a significant interest in one of the leading altcoins.
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This recent surge has not only reignited market enthusiasm but has also triggered discussions about XRP’s potential to surpass its previous peak.
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“XRP whales have accumulated 1.43 billion tokens, marking a remarkable 37% increase in demand,” noted a report by Santiment.
The recent XRP rally driven by whale activity has surged the altcoin to new heights, sparking discussions of future price peaks beyond $4.3.
Whale Accumulation Fuels XRP’s Breakout
The recent +30% rally in XRP has pushed the price up to $3.2, effectively surpassing its previous cycle high from 2021. This significant increase has captivated traders, particularly those who had invested at the 2021 peak, as they are now positioned to break even.
According to Santiment, the surge can be attributed to a notable increase in whale accumulation, with large holders acquiring approximately 1.43 billion XRP tokens over the past two months. This translates to nearly $4 billion in investments, indicating a solidified demand for the asset.
Source: Santiment
Can XRP Climb Higher After This Breakout?
With XRP now trading near $3.2, many are questioning whether it can continue its ascent past its previous all-time high of $3.4. Technical analysis suggests that if XRP breaks through this critical level, it may pave the way for prices to soar further.
The breakout pattern on daily charts indicates potential for an upward movement toward the $4.3 target, according to Fibonacci retracement levels. However, market dynamics indicate a cautious sentiment, as noted by the daily Relative Strength Index (RSI), which has entered the overbought territory—a scenario that might provoke profit-taking and lead to short-term corrections.
Source: XRP/USDT, TradingView
Potential Liquidation Triggers Ahead
Market analysis highlights a concerning aspect regarding the rising volatility surrounding XRP. The liquidation heatmap indicates substantial downside liquidity pockets at $2.9 and $2.8, levels that coincide with the fair value gaps previously identified. This forms a critical support zone that may attract buyers looking for optimal re-entry points.
Source: Coinglass
Future Outlook
In conclusion, XRP’s recent rally propelled by whale accumulation has revived interest in the altcoin, bringing it closer to its historical highs. While support levels exist, caution is warranted as profit-taking may induce temporary drops. Sustainable growth requires breaking through resistance points, particularly the $3.4 threshold.
As traders monitor these levels, it’s important to stay informed and ready for potential market shifts that can impact XRP’s trajectory.
