There are three key data points supporting XRP's upward momentum despite the pullback, including whale accumulation, increased network activity, and a strong market setup.
WHALE ACCUMULATION SUPPORTS XRP PRICE INCREASE
To cope with the market correction over the past week, XRP whale investors took advantage of the drop to $2.16 and bought more tokens as the price fell.
Data from Santiment shows that the number of tokens held by whale addresses from 1 million to 10 million XRP has increased significantly from December 3 to December 8.
These large investors have accumulated approximately 120 million XRP, worth around $288 million during the same period.
This move highlights the confidence of large investors in the future price prospects of XRP amid the current correction.
A detailed look at the recent movements of the XRP token shows increased accumulation among large investors. This is evidenced by higher withdrawals from Binance and other centralized exchanges (CEX), according to data from Whale Alert.
Including the movement of a whale transferring 21.7 million XRP tokens worth $56.7 million from the cryptocurrency exchange Binance to an undisclosed wallet. This transfer may be part of the investor's intention to hold their tokens in a self-custody wallet in anticipation of continued price increases.
The timing of this significant transfer of XRP from exchanges is noteworthy as it aligns with a major change in the allocation of held XRP.
Specifically, there has been a significant decrease in the supply of XRP on exchanges, as evidenced by data from CryptoQuant. The chart below shows that the XRP balance on exchanges decreased by 10% from December 5, when the price dropped to $2.16, to December 8.
This indicates that whales have no intention of selling, reinforcing XRP's bullish potential.
XRP LEDGER IS INCREASINGLY BEING WIDELY ADOPTED TO BOOST XRP PRICE
Active addresses on the XRP Ledger (XRPL) reached a 33-month high after the price of this token significantly increased over the past 30 days.
The number of active addresses on XRPL was less than 20,000 on November 1. This metric increased by over 440% to 108,771 addresses on December 3, the closest level recorded since February 20, 2020.
The number of transactions also increased by 190% from 1.4 million to 3.9 million in the same period.
The number of transactions and active addresses are widely used to estimate the number of users interacting with the network. They provide valuable insights into the overall activity of the network and the level of user interaction, serving as key indicators of blockchain adoption and interaction with the underlying token.
Therefore, the notable increase in these on-chain metrics could drive the value of XRP higher, sparking speculation that this token could reach an all-time high in the short term.
XRP PRICE HAS THE 'STRONGEST CHART'
Veteran trader Peter Brandt shared a chart predicting explosive growth in XRP's market capitalization.
In the chart he explained as the 'strongest chart' in the cryptocurrency space, Brandt identified XRP's market capitalization at $146 billion, the all-time high and the bullish target of an asymmetric triangle on the weekly timeframe. Note that this figure is higher than the all-time high market capitalization of $128 billion during the 2021 cycle.
XRP's increase to $2.90 on December 3 is 38% lower than the all-time high of $3.84 recorded on January 4, 2018. Brandt's analysis has led to discussions about the potential to maintain the bullish momentum towards new all-time highs for this token.
Cryptocurrency analysts remain optimistic about XRP's bullish potential, with some setting price targets in double digits.
Famous cryptocurrency analyst CrediBULL stated in a post on December 8 on X that: 'XRP has increased over 90% compared to ETH since I mentioned it could start outperforming both ETH and BTC over two weeks ago.'
The analyst notes that XRP could rise by 30% in the short term, reclaiming the important range and surpassing $3 for the first time in over six years.
With the current price of ETH ($4000), the price of XRP would be over $5.
Meanwhile, analyst Steph Is Crypto shared an article showing that XRP has escaped the bullish 'W' pattern with a target set above $35.
