Amid a recent market downturn that prompted many investors to retreat from XRP, large-scale holders (whales) have significantly increased their holdings, signaling a potential bullish outlook for the cryptocurrency. Two major factors—whale accumulation and a bull flag pattern—are shaping predictions of XRP’s rise to $4.
Whale Accumulation in the XRP Market
Data from Santiment reveals that XRP whales holding between 1 million and 10 million tokens added approximately 100 million XRP to their portfolios between December 7 and December 10. During this time, XRP’s price experienced a sharp decline of 27.2%, falling from $2.61 to $1.90.
In the recent dip, whales bought over 100 million $XRP ! pic.twitter.com/xU2YscIkvj
— Ali (@ali_charts) December 11, 2024
Instead of selling during the downturn, these whales took advantage of the lower prices to strengthen their holdings. Their cumulative balance rose from 4.71 billion XRP tokens to 4.80 billion, reflecting an additional $200 million in capital deployed.
This activity is part of a broader accumulation trend over the past month. In mid-November, these whale holdings stood at 3.71 billion XRP. By early December, this figure had risen to 4.8 billion, indicating that approximately 1.1 billion XRP tokens were added during this period. Concurrently, XRP’s price climbed from $0.50 to $2.87, highlighting the potential impact of whale activity on the market.
Although whales took some profits when XRP reached $2.87 earlier this month, their holdings increased again after a subsequent price dip. Following the market crash on December 10, XRP rebounded to $2.43, showing early signs of recovery.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Bull Flag Formation and Market Outlook
In addition to whale activity, XRP’s price movements are forming a bull flag pattern, which typically indicates a continuation of an upward trend. However, some technical indicators suggest a temporary correction before the anticipated breakout.
Ali Martinez, a prominent market analyst, noted on Twitter that while XRP is forming a bull flag, the TD Sequential indicator has issued a sell signal on the four-hour chart. “Based on this,” Martinez stated, “XRP could face another correction before the much-anticipated breakout beyond the $2 price range.”
Martinez predicts that after the brief pullback, XRP could begin its rally toward $4. He first outlined this possibility earlier in the week, identifying a fourth bullish pennant formation. Similar patterns had led to price increases from $0.69 to $1.10 and, subsequently, from $1.50 to $2.87.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter , Facebook , Telegram , and Google News
