In recent weeks, XRP has witnessed an extraordinary surge in its market performance, marking a significant milestone in the cryptocurrency landscape. The price of XRP has skyrocketed by an astonishing 380% over the past 23 days. Notably, in just the last four days, its value jumped by 75%, reaching a peak of $2.87 on December 2. This rapid ascent appears to be fueled by substantial buying activity from large investors, commonly referred to as “whales.”
The Role of Coinbase in XRP’s Price Surge
Ki Young Ju, CEO of on-chain analysis firm CryptoQuant, has shed light on this development, emphasizing that these whales are primarily operating through the US-based exchange, Coinbase. On December 2, he noted that “Coinbase whales are driving this XRP rally,” highlighting that Coinbase’s minute-level price premium fluctuated between 3% and 13% during this impressive surge.
Comparative Analysis with Other Exchanges
In stark contrast, Upbit—a prominent Korean exchange with a higher number of XRP investors compared to Binance—did not exhibit a significant premium. This suggests that the buying pressure is predominantly originating from the United States. This observation raises questions about the dynamics of XRP’s price surge and its potential implications for the future of the cryptocurrency market.
Speculations on Insider Activity
On his alternative account, Ki Young Ju hinted at possible insider activity influencing the market dynamics, stating, “Someone knew something.” This statement has sparked discussions and speculations within the cryptocurrency community, prompting traders to closely monitor the situation for any further developments.
Warnings Against Shorting XRP
In light of these developments, Ki Young Ju has cautioned traders against shorting XRP. He elaborated, “Shorting XRP right now seems risky, in my opinion. The $25 billion XRP deposit before the pump might look like market manipulation but could simply be front-running. This insider whale might be privy to extremely bullish news about XRP, such as the potential approval of a spot ETF.”
Retail Activity and Market Dynamics
Additionally, he shared a chart titled “XRP: Retail Activity Through Trading Frequency Surge (Spot & Futures),” indicating that retail trading activity for XRP has surpassed the highs of 2021 and is nearing levels last seen in January 2018 when XRP reached its all-time high of $3.92.
A Historic Rebound in Taker Buy/Sell Volume
Ki Young Ju also observed the one-year cumulative volume delta (CVD) of taker buy/sell volume for XRP, noting a historic rebound. He commented, “Whales are aggressively using market orders, driving overwhelming demand.” This observation underscores the pivotal role that whales are playing in shaping the market dynamics of XRP.
XRP/BTC Pairing: A Technical Analysis Perspective
From a technical analysis standpoint, crypto analyst Jacob Canfield has emphasized the importance of examining the XRP/BTC pairing. He notes that XRP is currently at a critical resistance zone on the BTC pair chart (XRPBTC), having just reached the $2.75 level on the USDT pair—a resistance point since December 2019.
Potential Breakout and Future Projections
Canfield suggests that a breakout at this critical point could signal a potential 240% move back to key resistance zones from 2017, 2018, and 2019. He further commented, “If we get real FOMO, we could be setting up for another 700% move to an all-time high against Bitcoin,” acknowledging the presence of “two of the strongest monthly candles for XRP that we’ve seen in over five years.”
Shorter Time-Frame Analysis for XRP/USD Pair
Examining shorter time-frames of the XRP/USD pair, Canfield highlights the utility of support and resistance levels to identify new entry points. He advises traders, “In bull markets, you need to use low time frame support/resistance to find new entries. Five-minute and fifteen-minute frames are the best. XRP, for example—$2.20 was the clear S/R invalidation. The base of the biggest green candle equals the base of impulse, usually the best place to re-enter a trade.”
As of the latest update, XRP is trading at $2.63, showcasing its continued volatility and the potential for further growth.
