XRP, the native token of Ripple Labs, is currently positioned for an upward trajectory. A combination of on-chain metrics, technical analysis, and notable whale activity points towards favorable conditions for a bullish movement. Recently, a major transaction was highlighted by Whale Alert, a renowned whale transaction tracker. It reported the transfer of 22.08 million XRP tokens, valued at $46.13 million, from Binance to an undisclosed wallet address. This development suggests heightened interest and activity among large-scale investors.
Whale Buy the Dip Adds $46.13 Million XRP
This significant transaction took place at a time when the broader cryptocurrency market was experiencing a downturn, struggling to gain momentum amidst a significant decline. The substantial transfer of XRP hints at a strategic “buy the dip” move by whale investors, seeking to capitalize on lower prices. Despite the widespread market downturn on December 10, 2024, which saw XRP and other cryptocurrencies face significant losses, whales and long-term holders remained steadfast. On-chain analytics from Coinglass reveal that these investors refrained from moving their XRP holdings to exchanges, signaling a reluctance to sell-off.
$140 Million of XRP Outflow from Exchanges
Recent data from XRP’s spot inflow/outflow metrics indicate a noteworthy trend. Exchanges have experienced a substantial outflow of $139.5 million worth of XRP over the past three days. Despite a modest inflow of $11 million due to the recent price decline, the overall data suggests that long-term holders are committed to accumulating XRP, even amid price fluctuations. In the cryptocurrency sector, outflows from exchanges to private wallets are often perceived as a bullish indicator, suggesting a potential rally and an optimal buying opportunity.
XRP Technical Analysis and Upcoming Levels
Beyond the increasing interest from whale investors, XRP’s daily chart is revealing a promising pattern. It’s forming a bullish flag and pole price action pattern, which could indicate significant upward momentum in the near future. The altcoin has successfully maintained its position above a strong support level of $2, keeping its bullish outlook intact. However, XRP is currently encountering minor resistance around the $2.45 mark.
According to recent price action analysis, if XRP manages to break through this resistance and closes a daily candle above the $2.5 level, there is a strong potential for a substantial surge. It could potentially rally by 60%, reaching as high as $4.2. Nevertheless, traders should also be cautious of an 18% price decline if market sentiment turns bearish.
Current Price Momentum
As of the latest update, XRP is trading near the $2.40 level, having experienced a price surge exceeding 20% in the past 24 hours. However, during the same timeframe, its trading volume saw a decrease of 8%, indicating reduced participation from traders and investors compared to the previous day. This fluctuation in trading volume could impact the token’s short-term price movement and should be closely monitored by market participants.
