Key takeaways:
XRP whales continue to accumulate during price dips, reflecting optimism for future price increases.
$4.20 appears to be the upcoming bullish target, though XRP needs to first surpass the $3.05 resistance level.
XRP (XRP) rebounded from the $2.70 support level, achieving an ascent of up to 8.5% to reach $2.92 on Monday. However, XRP has since retraced some gains, indicating a round of profit-taking on the brief rally.
Nevertheless, robust technical indicators and whale behavior imply that the XRP/USD pair is set for a trend reversal toward $4.
Can whale accumulation spark a resurgence for XRP?
XRP whales are maintaining their confidence in another rally, utilizing the recent dip as an opportunity to gather more tokens.
Related: Why XRP matters: 5 key factors driving its value beyond price
Santiment’s Supply Distribution metric reveals that whales holding between 10 million and 100 million tokens acquired over 120,000,000 XRP, valued at around $340 million, in the last three days. These entities now possess approximately 8% of the total XRP circulating supply.
When will the XRP price breakout?
XRP’s recovery effort faced resistance at $2.95, coinciding with the 50-day simple moving average (SMA).
The pullback is anticipated to find support along the lower trending line of the symmetrical triangle at $2.80.
Below this, a significant zone of interest exists between the local low at $2.69 and the 200-day SMA at $2.55, acting as the last bastion for bullish traders.
On the upside, XRP needs to maintain the $2.88-$2.95 range to solidify its standing. This range corresponds with the current positions of the 50-day and 100-day SMA, underscoring its significance as a supply zone.
Breaking through this threshold would elevate the price above the upper trendline of the triangle at $3.05. Such a progression would confirm a bullish breakout from consolidation, laying the path for a target of $4.20, which represents a 47% increase from current prices.
Analyst Gordon stated that “the next leg up for $XRP will be rapid and forceful,” once it exits a symmetrical triangle.
As reported by Cointelegraph, XRP is on track for its best quarterly close ever, positioning itself favorably for potential gains in Q4, with a target reaching as high as $15.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
