XRP whales have raised hopes for the end of the year by accumulating $2.17 billion worth of tokens. These large purchases have created expectations for a price rally in XRP, but increasing inflows on exchanges suggest that selling pressure is offsetting the buying momentum. Technical analysis highlights that XRP could potentially rise to $3.50, but whale sales pose a risk of pushing the price down to $1.98.
As of Dec. 25, XRP whales have amassed $2.17 billion worth of tokens. This massive buying has sparked speculation that XRP could see new highs in price shortly before the end of the year. However, alongside this buying activity, on-chain data suggests that some whales are selling. This could make XRP’s future price action uncertain.
According to Santiment data, addresses holding 1 million to 10 million XRP have purchased an additional 100 million XRP in the past three days, up from 4.85 billion XRP on Dec. 15 to 4.95 billion today. Likewise, wallets holding between 100 million and 1 billion XRP added 870 million tokens, up from 8.86 billion to 9.63 billion on Sunday.
These large accumulations represent a $2.17 billion buyout of the altcoin and are generally considered a near-term price rally signal. However, on-chain data from CryptoQuant suggests that the expected outflow may not happen quickly. The Whale Flow to Exchange metric shows large holders transferring their tokens to centralized exchanges, which could signal increasing selling pressure. Over the past three days, the metric has increased from 2,243 to 3,585, indicating an increasing flow of XRP onto exchanges.
BeInCrypto’s daily XRP/USD chart shows the altcoin forming a bullish pennant. This pattern is a bullish pattern that is broken up by two consecutive bullish rallies followed by a brief period of consolidation. A pennant pattern is a pattern formed by a pullback following an initial bullish wave and parallel upper and lower trend lines.
The price of XRP is about to break above the upper trendline of the bull pennant. If it breaks this level, the price could rise to $3.50 in the short term. However, this positive outlook could change if whales decide to sell in large volumes. Also, if the XRP price breaks below the lower trendline of the formation, the next support level could be $1.98.
As a result, the current situation for XRP remains uncertain. The balance between buying and selling by whales will be a key factor that will shape price movements in the short term.