The XRP price is currently experiencing a period of consolidation following an exhilarating 460% surge over four weeks. This remarkable rally saw XRP break above $2.8 on December 3, a milestone not achieved since 2018. However, as investors began to secure profits from the rally, XRP’s price dipped to $2.22 by December 5.
On-Chain Data Indicates Whale Activity
On-chain data reveals that XRP whales are capitalizing on this price dip to bolster their holdings, effectively curtailing further price declines. With this strategic accumulation, technical analysis suggests that XRP is poised to breach the $5 price level imminently.
Technical Analysis: Prospects of a Breakout to $5.26 by December 11
Against the backdrop of whale activity and price stabilization, technical analysis now suggests that XRP could exceed the $5 mark in the coming days. This anticipated rally is contingent upon XRP breaking through critical retracement levels, as witnessed in November.
Crypto analyst CryptoInsightUK has presented a convincing argument for the altcoin’s next price target, drawing attention to a historical pattern in XRP’s price movements. His analysis, shared on the social media platform X, underscores how XRP’s corrections often encounter resistance at the 0.5-0.618 Fibonacci retracement levels. Once these barriers are overcome, the price typically escalates rapidly towards the 4.236 Fibonacci extension.
During XRP’s most recent breakout, it took a little over three days to achieve the 4.236 Fibonacci extension after surpassing retracement resistance. During this period, XRP’s price surged from below $1.46 to $2.9 on crypto exchanges in just three days and 17 hours.
Currently, XRP is trading between the 0.5 to 0.618 Fibonacci retracement levels, derived from the recent peak of $2.9. If a similar pattern unfolds, XRP is expected to embark on another rally, potentially reaching $5.26 by December 11. At present, XRP is valued at $2.53.
This projected movement would see XRP breaking past its current all-time high of $3.40, which has persisted for nearly a week. CryptoinsightUK suggests that this anticipated surge could occur even more swiftly due to heightened market activity.
Whale Accumulation Bolsters Bullish Outlook
The behavior of XRP whales plays a crucial role in supporting a bullish price outlook. On-chain data showcases significant whale accumulation during the recent price downturn, with some investors acquiring XRP in substantial quantities. According to Santiment data, XRP addresses holding between 1 million to 10 million tokens have collectively acquired over 120 million XRP, valued at $288 million, since December 5.
This accumulation strategy serves a dual purpose: it helps to stabilize prices and provides the liquidity required for the next upward price movement.
As of now, XRP is trading at $2.54.
Conclusion
The current period of consolidation in XRP’s price, combined with strategic whale accumulation and favorable technical indicators, sets the stage for a potential breakout. While the market remains volatile, the alignment of these factors suggests a promising outlook for XRP’s price trajectory in the near future.
