After experiencing a significant rise, XRP, the native token of Ripple, appears to be consolidating near a critical level. Notably, this ongoing consolidation has attracted considerable attention from whales and traders.
XRP whale activity indicates buying interest
Today, Whale Alert posted on social media tracking a whale transferring $36.67 million worth of 25 million XRP from Upbit. This notable transaction hints at how whales are taking advantage of the current price consolidation and indicates potential buying opportunities.
In addition to recent withdrawals, the supply of XRP on major cryptocurrency exchanges, including Binance and Upbit, has been steadily declining over the past two weeks. This declining supply trend may be driven by institutional interest in launching an XRP exchange-traded fund (ETF) in the United States.
Moreover, whales and institutions have transferred 500 million XRP tokens, indicating buying pressure from industry giants. This notable buying activity and huge interest in remittance-based tokens began after Donald Trump, a supporter of cryptocurrencies, won in the United States. Since then, the token has surged 185%.
XRP price continues to be bullish
The surge in XRP price at the beginning of this month was unprecedented. Specifically, XRP's price skyrocketed from a low of $0.4976 on November 3 to a three-year high of $1.6 on November 23. This indicates a price increase of 220% within just over 20 days.
However, since reaching a three-year high, XRP has entered an adjustment phase, falling nearly 20%. Despite the price correction, XRP's trading price remains fundamentally above the main trend line, which has supported XRP's price during the upward movement.
Currently, technical analysis shows that the XRP price is about to rebound from this trend line or break below it, which could determine its price direction. If it follows this main trend line, XRP will rebound upwards, just like it did on November 24. After rebounding at this point, XRP continued to bounce back from a low of $1.2775 and tested the price level of $1.54 again on November 24.
Now, as XRP's price retests this main trend line, the more bullish option is an immediate rebound. A breakout of the upward trend will allow XRP to resume its upward trend, potentially reaching a price level of $1.9. In light of this, analysts have emphasized key price areas that could impact XRP's future movements. The range between $1.520 and $1.620 has been identified as a key area where the price may encounter strong resistance in the coming trading days.
Is the $2 milestone for XRP imminent?
XRP is currently in a consolidation phase. A breakout or collapse will determine whether the price rises or falls in the coming days. Given the current market sentiment, altcoins seem to be on the verge of a breakout.
If XRP breaks out of the consolidation area and closes above $1.55 on the daily chart, it is likely to reach the $2 milestone in the coming days.
However, it should be noted that despite XRP's price continuing to show bullish signs, there remains the possibility of a downward breakout. If the daily closing price is below $1.38, it indicates that the XRP price will break downwards. If this occurs, XRP may continue its downtrend and retest the next significant support level at $1.32!