XRP Price at $5 Next? 3 Charts Suggest the Historic Rally Isn’t Over
Price data from $XRP indicates that the current correction is a buying opportunity for whales and shows the potential for the altcoin to move higher.
XRP Price to Hit $5 Next? 3 Charts Suggest Historic Rally Isn’t Over
ALTCOIN AND DETAILS
The price of XRP
tickers down
2,27 €
has fallen significantly over the past seven days, dropping as low as $2.16 on December 5. Its price has dropped as much as 16% from its multi-year highs of around $2.90 to current levels of around $2.39.
XRP/USD daily chart. Source: Cointelegraph/TradingView
Despite the pullback, there are three data points that support XRP’s upside, including whale accumulation, increased network activity, and a strong market setup.
Whale accumulation supports XRP's rise
In response to the market correction over the past week, XRP whales took advantage of the drop to $2.16 and bought more tokens during the dips.
Data from Santiment shows that the amount of tokens stored in whale addresses holding between 1 million and 10 million XRP increased significantly between December 3 and December 8.
These large investors accumulated approximately 120 million XRP, valued at around $288 million, during the same period.
Tokens held by addresses with between 1M and 10M XRP tokens. Source: Santiment
This move underscores the confidence of these investors in the future prospects of higher XRP prices amid the current correction.
A detailed analysis of recent XRP token movements reveals increased accumulation among large investors. This is evidenced by increased withdrawals from Binance and other centralized exchanges (CEX), according to data from Whale Alert.
This includes a whale transferring 21.7 million XRP tokens, valued at $56.7 million, from cryptocurrency exchange Binance to an unknown wallet. This transfer was likely part of the investor’s intention to hold their tokens in self-custody wallets in anticipation of further price increases.
The timing of these substantial transfers of XRP from exchanges is notable as it coincides with a critical shift in the distribution of XRP holdings.
Specifically, there is a substantial decline in the supply of XRP on exchanges, as evidenced by CryptoQuant data. The chart below shows that the balance of XRP on exchanges fell by 10% between December 5, when the price dropped to $2.16, and December 8.
This suggests a lack of selling intent from whales, reinforcing the upside potential for XRP.
Growing adoption of XRP Ledger will boost XRP price
Active addresses on XRP Ledger (XRPL) have hit a 33-month high following the remittance token’s significant price surge over the past 30 days.
XRPL active addresses were less than 20,000 on November 1. This metric has increased by over 440% to 108,771 addresses on December 3, levels not seen since February 20, 2020.
The number of transactions also increased by 190%, from 1.4 million to 3.9 million during the same period.
Transaction counts and active addresses are widely used to estimate the number of users interacting with a network. They offer valuable insights into overall network activity and user engagement, serving as a key indicator of blockchain adoption and interaction with the underlying token.
This notable increase in these on-chain indicators could push the value of XRP higher, generating speculation that the token could reach all-time highs in the near term.
XRP Price Is The “Most Powerful Chart”
Veteran trader Peter Brandt shared a chart that projects a massive breakout in XRP's market cap.
In what he called the “most powerful chart” in the crypto space, Brandt identified XRP’s market cap at $146 billion, an all-time high and the upside target of an asymmetrical triangle on the weekly time frame. Notably, this is up from the 2021 cycle’s all-time high market cap of $128 billion.
XRP’s surge to $2.90 on Dec. 3 was 38% below its all-time high of $3.84 recorded on Jan. 4, 2018. Brandt’s analysis has sparked talk of the token’s ability to sustain its price rally to new all-time highs.
Cryptocurrency analysts remain optimistic about XRP’s potential for further gains, with some setting double-digit price targets.
“XRP is up over 90% against ETH since I said it would likely start to significantly outperform both ETH and BTC just over two weeks ago,” cryptocurrency analyst CrediBULL commented in a Dec. 8 post on X.
The analyst noted that XRP could rise 30% in the short term, reclaiming a key range and breaking above $3.00 for the first time in more than six years.
“At current ETH prices ($4,000), that would put XRP above $5.”
Meanwhile, analyst Steph Is Crypto shared an article showing XRP breaking out of the bullish “W” pattern with a target set above $35.
