Key takeaways:
XRP whale addresses have surged to an all-time high of 317,500, signaling accumulation.
For XRP to reclaim $3, it must first surpass the $2.59 resistance level.
XRP (XRP) bounced from Friday’s low of $2.18, climbing as much as 13% to an intraday high of $2.48 on Monday.
Strong technical signals and whale activity suggest that the XRP/USD pair is set for a trend reversal towards $3 in the near future.
What’s driving XRP’s rebound?
XRP whales remain optimistic about further price increases, taking advantage of the recent dip to accumulate more tokens.
Santiment’s whale count metric reveals that wallets holding at least 10,000 XRP have reached an unprecedented 317,500.
“XRP’s price has rebounded back a modest +5.3%,” Santiment stated in a post on X on Saturday.
Related: Ripple aims to acquire $1 billion in XRP tokens for their new treasury: Report
The market intelligence firm noted that the increase in mid to large stakeholders was a “positive long-term indicator,” adding:
“XRP now has over 317.4K wallets holding at least 10K coins for the first time ever.”
This trend corresponds with a significant reduction in XRP supply on centralized exchanges over the past month, as per Glassnode data.
The chart below illustrates that the percentage of XRP supply listed on exchanges fell to 3.9% from 6.12% between September 19 and Sunday.
A declining balance on exchanges indicates less supply available for immediate sale, reinforcing the upside potential for XRP.
“The majority of XRP on exchanges is already gone,” commented crypto investor Black Swan Capitalist in a Sunday post on X, adding:
“With so little liquidity remaining, any significant demand will pressure the market to quickly absorb the remaining supply. Conditions seem favorable for a major trend reversal.”
As reported by Cointelegraph, Ripple plans to establish a $1 billion Digital Asset Treasury company.
XRP price must reclaim the 200-day SMA
XRP’s price action has been tracing a potential V-shaped recovery pattern on the daily time frame since mid-September, as illustrated below.
A V-shaped recovery denotes a bullish pattern formed when an asset experiences a rapid price increase after a sharp decline. It is deemed complete when the price rises to the resistance at the top of the V formation, also known as the neckline.
XRP appears to be on a similar path, but bulls need to overcome $2.59, where the 200-day simple moving average (SMA) is situated, to confirm the recovery.
Additionally, a significant obstacle resides in the $2.81 to $2.95 supply zone, marked by the 50-day and 100-day SMAs, respectively.
Beyond that, the next logical target would be the neckline at $3.40 to finalize the V-shaped pattern, reflecting a potential 26% increase from the current price.
XRP analyst Egrag Crypto emphasized the key levels to monitor, noting that a “close above $2.55 to $2.65 on the 3-day time frame would signal a strong bullish trend!”
Meanwhile, the Bollinger Band width, a technical indicator utilized by traders to gauge momentum and volatility, has reached its tightest level since June, suggesting that a significant price movement may be imminent.
The last occasion the bands were this restricted resulted in a 66% surge in XRP price from its multi-year high of $3.66 to $2.20.
According to Cointelegraph, the 20-day EMA at $2.63 represents a critical hurdle for bulls, as surpassing it could drive XRP price towards $3.40.
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.
