Technical Analysis Puts XRP Price Above $5 In Next 3 Days, Whales Buy $288 Worth Of XRP

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen numerous price surges and consolidations, but the recent performance of XRP has been nothing short of extraordinary. The 460% surge within four weeks is a testament to the resilience and potential of this cryptocurrency.

After a remarkable 460% increase over four weeks, causing the XRP price to soar above $2.8 on December 3 (its highest since 2018), it is now stabilizing or consolidating following a wave of profit-taking. This period has led to a drop in the XRP price to around $2.22 on December 5.

It’s worth noting that large XRP holders, often referred to as ‘whales’, seem to have seized the recent downturn to amass more of their holdings. This could potentially halt any further drops in price. Additionally, a technical analysis of XRP’s price trend suggests that it may soon surpass the $5 mark within the next three days.

Technical Analysis Suggests Breakout To $5.26 By December 11

Against the scenic view of ongoing whale actions and stable market trends for XRP, technical indications suggest a potential increase in its price beyond the $5 threshold over the upcoming three days. This surge may occur if XRP successfully breaches significant resistance levels, similar to the way it did back in November.

It’s worth noting that a crypto analyst (CryptoInsightUK) has made a strong argument for the potential price increase of an altcoin. His reasoning is based on a recurring pattern in its market behavior. He points out that XRP’s corrections within a range often encounter resistance at the 0.5 to 0.618 Fibonacci retracement levels. After these levels are surpassed, there’s usually a rapid increase in price heading towards the 4.236 Fibonacci extension, as expressed on social media platform X.

In its previous surge, XRP climbed past the 4.236 Fibonacci extension level, which it reached approximately three days after breaking through resistance of a prior retracement. During this brief span, the value soared from around $1.46 to hit $2.9 on various cryptocurrency exchanges within three days and seventeen hours.

According to the present trend in its price chart, Ripple (XRP) is again being traded within the Fibonacci retracement levels of around 0.5 and 0.618. If a pattern similar to the previous one continues, we might see XRP’s price increase towards $5.26 by December 11th.

This action might cause the cost of XRP to swiftly surge beyond its existing record peak of $3.40, a level it’s held for close to a week. Notably, analyst CryptoinsightUK speculates that this anticipated rise could happen more quickly than before, thanks to the accelerated pace of the market.

Whale Accumulation Supports Bullish Price Outlook

The buying behavior of large XRP holders, often referred to as “whales,” plays a crucial role in fostering optimistic market outlooks. Luckily, recent on-chain data indicates substantial accumulation by these whales during the latest price decline, with some making sizable purchases. According to Santiment’s analysis, addresses holding between 1 million and 10 million XRP have acquired over 120 million XRP valued at approximately $288 million since December 5.

This buildup fulfills two roles. Firstly, it helps halt any additional price drops, and secondly, it offers the required fluidity for the upcoming rise.

At the time of writing, XRP is trading at $2.54.

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2024-12-08 22:16