Crypto analyst Ali, citing Santiment data, reveals that whales have acquired a staggering 1.1 billion XRP, equivalent to around $570 million, since February. This comes after the previous report of whales purchasing 360 million XRP worth $170 million during a 12% price drop in late June. The accumulation of XRP by whales has historically coincided with price increases, similar to a significant rally observed in late 2020. Notably, the recent wave of whale stockpiling aligns with a surge in XRP’s price, which reached highs of $0.545 in March.
The positive momentum continued in Q2, 2023, with Messari reporting a 42.5% year-to-date increase in XRP’s circulating market cap, primarily driven by its price rise in the first quarter. Despite a drop in early May, XRP’s price nearly approached its yearly high set in late March during June.
Analyzing XRP’s daily charts reveals potential brewing developments for the sixth-largest cryptocurrency. A cup and handle formation appears to be emerging, indicating a period of consolidation followed by a breakout. This bullish continuation pattern is characterized by a cup-like price movement followed by a downward trend.
Furthermore, the XRP Ledger witnessed impressive network activity in the last quarter, with nearly 523,000 addresses receiving transactions on May 28, 2023 – nearly 11 times the daily average in Q2. This remarkable address activity marked the second-highest in its history. At the time of writing, XRP’s price had a slight increase, reaching $0.47 in the last 24 hours.
Several indicators suggest that the altcoin is on the brink of a potentially substantial surge. It continues to move within a descending price channel, known as a falling wedge pattern in technical analysis, which could indicate an upcoming bullish reversal. However, monitoring key price levels is crucial.
Falling Wedge Pattern Points to XRP Surge
Examining XRP’s chart reveals the characteristics of a falling wedge pattern, where lower highs and lower lows converge. This pattern suggests the presence of selling pressure, but buyers consistently step in at lower levels. A breakout above the upper trend line of the wedge could lead to a significant upward swing for XRP.
Trading volume serves as a critical factor to consider. It has been decreasing alongside the falling price, indicating reduced selling pressure and potentially signaling a trend reversal. Lower volume during a downward trend is viewed positively as it suggests decreased interest in selling at current price levels.
The decreased selling interest could favor buyers and trigger an upward price movement. The Relative Strength Index (RSI), a momentum oscillator, has been moving sideways, reflecting a balanced market with relatively equal buying and selling pressures. Notably, a significant movement in either direction could provide an early indication of the future price trajectory.
While the current technical setup suggests a potential bullish breakout for the token from its falling wedge pattern, traders and investors must closely monitor price behavior. Key price marks to watch include the upper trend line of the wedge and any corresponding surge in volume supporting a breakout. It is crucial to exercise rigorous risk management and not solely rely on technical analysis when making investment decisions.