XRP is at a critical point ahead of significant price action and could have an 80% upside potential if it manages to hold above major resistance levels.
Over the past three days, around $160 million worth of XRP has seen a significant influx from long-term holders, suggesting strong market interest.
As Whale Alert noted, a recent large transfer of 22.08 million XRP points to an ongoing accumulation trend among large investors.
In this article, XRP’s 80% price appreciation potential, backed by strong accumulation and technical support, will be discussed in the context of the recovering crypto market.
In December, as the cryptocurrency market recovered from recent volatility, Ripple Labs’ native digital asset XRP gained upward momentum. Whales and long-term holders have been playing a significant role in this recovery process, demonstrating significant activity that has created an optimistic sentiment towards the altcoin.
According to the latest report from Whale Alert, transactions worth $46 million worth of XRP were recorded, reflecting an accumulation trend among large investors. This move suggests that large investors are evaluating opportunities to buy at discounted prices, reinforcing their belief in XRP’s recovery and growth potential.
Technical analysts are eyeing clear patterns ahead of a possible breakout for XRP. According to the latest data from COINOTAG, XRP is forming an optimistic flag and pole formation on its daily chart, which usually signals a consolidation phase that precedes bullish price action. Traders believe that a breakout here could pave the way for an impressive rally above the $2.5 level.
In the future, if XRP successfully closes above $2.5, analysts expect an 80% rally, which points to $4.5. This level will not only initiate a strong momentum but will also create a significant psychological barrier for investors.
However, market dynamics remain volatile. If bearish sentiment resurfaces, a pullback to $2 is likely. However, the optimistic outlook for XRP remains valid as long as it remains above this critical support level, increasing the chances of a strong recovery.
With an RSI of 64, XRP is in a positive position within its trading parameters and has the potential to gain value without reaching overbought conditions. XRP is currently trading at around $2.44, and recent price gains have exceeded 5.5%, which could indicate renewed interest among investors.