Key takeaways:
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XRP whales continue to accumulate on dips, indicating confidence in higher prices ahead.
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$4.20 is likely the next bullish target, but XRP must first break $3.05 resistance.
XRP (XRP) bounced off $2.70 support, rising as much as 8.5% to a high of $2.92 on Monday. XRP has since given back some of its gains, indicating profit-booking on the short rally.
However, a strong technical setup and whale activity suggest that the XRP/USD pair is primed for a trend reversal toward $4.
Can whale accumulation reignite XRP?
XRP whales remain confident about the prospects of a further rally, using the recent pullback to accumulate more tokens.
Related: Why XRP matters: 5 key factors driving its value beyond price
Santiment’s Supply Distribution metric indicates that whales holding between 10 million and 100 million tokens acquired over 120,000,000 XRP, worth about $340 million, over the last three days. These entities now hold about 8% of the total XRP circulating supply.
When will XRP price break out?
XRP’s attempt at recovery was curtailed by the overhead resistance of $2.95, which also coincides with the 50-day simple moving average (SMA).
The pullback is expected to find support from the lower trending line of the symmetrical triangle at $2.80.
Lower than that, a key area of interest lies between the local low at $2.69 and the 200-day SMA at $2.55, which provides the last line of defense for the bulls.
On the upside, XRP needs to hold the $2.88-$2.95 zone to establish its footing. This is where both the 50-day and 100-day SMA currently sit, reinforcing the importance of this supply zone.
Overcoming this barrier would push the price above the upper trendline of the triangle at $3.05. Such a move would confirm a bullish breakout from consolidation, paving the way for a run toward the measured target of the triangle at $4.20 or a 47% rally from the current levels.
Analyst Gordon said that “the next leg up for $XRP will be fast and aggressive,” once it breaks out of a symmetrical triangle.
As Cointelegraph reported, XRP is poised for its best quarterly close ever, putting it in a strong position for potential gains in Q4, with a target of as high as $15.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
