XRP has started 2025 on a high note, with its price rising 10% in 24 hours. The rally comes amid the accumulation of 350 million coins in the past two days.
Following this, on-chain data points to additional bullish momentum, suggesting that XRP’s rise may not be over. Here’s what could happen next for the cryptocurrency.
XRP holders start 2025 buying in large volumes
On December 31, 2024, XRP was worth $2.12. By press time, it had risen to $2.36, making it the biggest gainer among the top 10 cryptocurrencies by market cap.
This price increase could be linked to a significant accumulation of XRP by whales. Data from Santiment reveals that addresses holding between 100 million and 1 billion XRP increased their total balance from 9.36 billion on Tuesday to 9.71 billion today (2) — a purchase of 350 million tokens valued at $826 million.
Such large-scale accumulation usually indicates strong buying pressure, and if the trend continues, XRP price could see further upward momentum.
XRP Address Balance. Source: Santiment
In addition to this buying pressure, on-chain data shows a significant increase in the cryptocurrency’s social dominance. Social dominance, as the name suggests, measures the level of attention the market gives to a cryptocurrency.
When it increases, it indicates that there is a high level of discussion around the token compared to other assets in the top 100. However, a decline implies the opposite.
Currently, XRP's social dominance had risen to 5.61%, suggesting that demand for the token could increase if it maintains the attention it is receiving. If so, the price will likely start the first month of the year above $3.
XRP Social Dominance. Source: Santiment
Price Prediction: Bullish Momentum to Continue
With the cryptocurrency closing the year above $2, the daily chart shows the formation of a bullish flag. The bullish flag pattern, which resembles a flag on a flagpole, is considered a significant signal when analyzing a cryptocurrency.
This pattern forms after a strong uptrend, followed by a brief consolidation. This usually leads to another sharp price increase as investors anticipate continued upward movement.
Typically, when the price breaks below the flag, a correction occurs. But in this case, the price of XRP rose above the flag, suggesting that the altcoin’s value could rise to $3.25.
XRP Daily Analysis. Source: TradingView
If accumulation intensifies in large volumes, the price may move higher. However, if the token faces significant selling pressure, the trend may change, and the price may drop to $1.80.
The article XRP Surges 10% Amid Accumulation: What’s Next appeared first on BeInCrypto.
