XRP is making a strong comeback from recent price challenges, demonstrating significant bullish potential as it follows an upward trajectory led by prominent wallet holders referred to as whales.
These whales are exerting a notable influence on XRP's price behavior by amassing substantial quantities of the token.
Ready for a Rally: Optimistic Signs from XRP Whales
Whale accounts holding between 10 million and 100 million XRP have been actively accumulating, with approximately 270 million XRP – equivalent to around $730 million – purchased over the past week. This accumulation signifies a robust belief in the future prospects of the cryptocurrency, particularly given the substantial impact that large wallet holders wield on price actions.
These whale investors exhibit strong confidence in XRP's potential for further upswings. Their buying spree indicates a belief that the price will sustain its recovery momentum and breach resistance thresholds. The continuous accumulation of XRP by these whales reinforces the optimistic sentiment, setting the stage for potential price surges in the coming days.
Amid Positive Momentum, XRP Targeting $3
XRP's overall momentum is showing positive signs, with a notable uptick in weighted sentiment observed for the first time in a month. While investor sentiment had been largely cautious over recent weeks, the recent shift towards positivity reflects a growing trust in XRP’s rebound and hints at increased buying interest.
Enhanced investor confidence could pave the way for substantial upside movement in XRP's price. This change in sentiment may draw more participants into the market, injecting further momentum into the recovery and propelling XRP to new peaks.
Looking ahead, XRP is currently trading at $2.70 and eyeing the establishment of this level as a robust support base. Succeeding in cementing support at $2.70 is vital for XRP to sustain its upward drive. Breaking past the $2.95 resistance and converting it into a support zone will strengthen the rally, propelling XRP towards loftier price objectives.
In the short term, the price movement of XRP may be influenced by the formation of an ascending wedge pattern. While this pattern typically hints at bearish trends in the long run, it is pointing towards a short-term bullish breakout. If XRP manages to surpass its all-time high of $3.40 and beyond, it could extend its ongoing rally.
However, failure to breach and uphold $2.70 as support may lead to a sharp decline towards the next support level at $2.33. Such a scenario would negate the existing bullish pattern and outlook, potentially hampering or reversing the recovery process.