XRP Whales Move $132M Ahead Of Santa Claus Rally, ATH Looming?

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As a seasoned analyst with over two decades of market experience under my belt, I have seen my fair share of bull runs, bear markets, and everything in between. The recent 60 million XRP transfer between unidentified wallets has sparked quite the buzz in the crypto world. With XRP whale movements often heralding significant price shifts, especially amid the potential launch of an XRP ETF, this development certainly warrants attention.

As reported by Whale Alert’s blockchain tracker, there was a substantial transfer of 60 million XRP, amounting to approximately $132,202,106, from one unidentified wallet to another. This notable transaction has sparked interest because market experts are speculating that the price of XRP might surge, potentially reaching a new record high in the near future.

Massive XRP Whale Transfer Sparks Speculation

A significant shift of 60 million XRP, initially noted by blockchain tracking services, hints at possible strategies from big XRP token owners, sparking speculation. Large XRP transfers are frequently associated with readying for significant market occurrences or price fluctuations, particularly in light of the growing likelihood of an XRP ETF launch.

EGRAG Crypto, a well-known market analyst, voiced confidence in XRP’s direction and forecasted a potential rise to $27. He noted that XRP is currently positioned above its critical Break of Structure (BOS) line, and its positioning with the 21 Exponential Moving Average (EMA) could create favorable conditions for an uptrend or bullish spike.

Furthermore, data from CryptoQuant shows that XRP is the most actively traded altcoin on Binance‘s futures market in December, with a trading volume of approximately $116.6 million. Some analysts believe this high level of activity could signal growing interest in the asset, possibly hinting at increased investment ahead of the anticipated Santa Claus rally.

Historical Patterns Indicate Potential Breakout

Market analysts are making connections between XRP’s present price fluctuations and its pattern from the 2017 bull market, given the activity of XRP’s large holders (whales).

A well-known trader, referred to as Crypto Villain, pointed out the price trend of XRP that closely resembles its 2017 path – an initial sharp drop, followed by a rebound, a period of stabilization, and ultimately a powerful surge.

Crypto Expert, Crypto Vilian, pointed out that the price of XRP has just burst free from an extended downtrend and is now in a period of consolidation, which typically comes before substantial price increases. He further speculated that during this cycle, the market cap of XRP could surpass a staggering $1 trillion, implying each token would cost more than $17. Yet, he stressed that such an outcome hinges on overall market conditions, especially the behavior of Bitcoin.

XRP Price Faces Short-Term Bearish Patterns

Despite generally positive outlook for XRP in the long run, its daily chart shows a descending triangle formation, suggesting a possible short-term downtrend due to increasing bearish pressure. According to TradingView analysis, the support level is roughly around $2.19. If this support level is broken, the trendline of lower highs could cause a dip down to approximately $1.69.

Conversely, analysts believe there’s potential for XRP to recover if it bounces from its current support. If it manages to break past the $2.50 resistance, it might disprove bearish assumptions and pave the way for XRP to reach its recent peak of $2.90 again.

Currently, data from Messari’s on-chain analysis indicates that large XRP holders, those with over one million tokens, have been gradually decreasing their balances. This suggests that these significant investors are cashing out during the asset’s consolidation period, which has increased market tension in recent times. Consequently, there is growing apprehension among investors that the price of XRP may not surge imminently unless it receives a boost from the resolution of the Ripple-SEC case or the departure of Gary Gensler as head of the Securities and Exchange Commission in January.

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2024-12-24 02:22