The price of XRP has soared to $2.49, rising nearly 30% in 24 hours. This price increase is a major milestone for the asset, which has reached its highest value in six years.
As XRP breaks key resistance levels, questions arise about the cause of this sudden rally. Is this the start of a new chapter for the altcoin or just a passing trend?
On-chain analysis explores the factors behind this move and its potential implications for the future of Ripple’s native token.
XRP Sees Billion-Dollar Accumulation
About a month ago, XRP was priced at $0.50, with little sign of it rising to $1. However, the altcoin has since increased in value by 355%, with its market cap reaching $133 billion. This has seen the project surpass Solana (SOL) and Tether (USDT) in this regard.
According to findings from BeInCrypto and data obtained from Santiment, this rally could be linked to notable whale activity. Over the past three weeks, wallets with between 1 million and 10 million tokens have accumulated a total of 697.1 million XRP.
At the altcoin’s current value, this is worth $1.66 billion, indicating that whales played a significant role in the price surge by increasing buying pressure.
Ripple Whale Accumulation. Source: Santiment
However, on-chain data reveals that whales are not the only ones driving the recent price surge. Sentiment data also highlights significant involvement from retail investors.
In fact, the total number of XRP wallets has reached a record high of 5.5 million, indicating that many previously dormant wallets are now holding balances. This trend is further supported by network growth, which measures new addresses completing their first transactions.
In October, network growth was below 9,000, but has since risen to 54,700. This substantial increase suggests an increase in adoption and activity on the XRP Ledger. If this momentum continues, the price rally could persist even after the recent drop to $2.35.
Ripple Network Growth. Source: Santiment
Price Prediction: Is $3 Viable?
On the daily chart, the MACD remained in the positive region. Therefore, the reading indicates that the momentum around XRP is positive. If sustained, this could push the altcoin’s price even higher.
Another indicator that projects new highs is the Ichimoku Cloud, which indicates support or resistance. When the cloud is above the price, it indicates resistance, and the price may decline.
But in this case, it is below the token price. Therefore, the value may continue to rise, possibly towards $3.
Ripple Daily Analysis. Source: TradingView
On the other hand, if XRP becomes overbought or whales start taking profits, this may not happen. In this scenario, the altcoin’s value could drop to $1.61.
The article XRP Soars With Whale Support: Will It Continue To Rise? appeared first on BeInCrypto.
