Technical Analysis Puts XRP Price Above $5 In Next 3 Days, Whales Buy $288 Worth Of XRP
The XRP price is consolidating after a crazy 460% surge within four weeks that saw it breaking above $2.8 on December 3 for the first time since 2018. This consolidation saw the XRP price dropping to $2.22 on December 5 as many investors took some profits after the rally.
Interestingly, on-chain data shows that XRP whales have taken advantage of this dip to stock up their holdings to essentially prevent further price declines. With this in mind, technical analysis of the coins price chart shows that the cryptocurrency is well on track to breaking above the $5 price level in the next three days.
Technical Analysis Suggests Breakout To $5.26 By December 11
Amidst the backdrop of whale activity and price consolidation, technical analysis is now pointing to the possibility of the XRP price surpassing the $5 mark within the next three days. This rally hinges on XRP breaking through key retracement levels like it did in November.
Interestingly, a crypto analyst (CryptoInsightUK) outlined a compelling case for the altcoins next price target, citing a historical pattern in the assets movement. His analysis, shared on the social media platform X, highlights how XRPs range-based corrections often find resistance at the 0.5-0.618 Fibonacci retracement levels. Once these levels are breached, the price tends to rally swiftly toward the 4.236 Fibonacci extension.
During XRPs last breakout, it took just over three days to reach the 4.236 Fibonacci extension after breaking through retracement resistance. During that time, the price surged from below $1.46 to reach $2.9 on crypto exchanges within three days and 17 hours.
Based on the current price chart, XRP is once again trading between the 0.5 to 0.618 Fibonacci retracement levels drawn from the recent high of $2.9. If a similar trajectory were to play out, this should push the XRP price on another rally to reach $5.26 by December 11.
Such a move would see the XRP price rapidly breaking above its current all-time high of $3.40 that has stood for almost seven days. Interestingly, analyst CryptoinsightUK suggests that the predicted move could unfold even faster this time due to increased market velocity.
Whale Accumulation Supports Bullish Price Outlook
The behavior of XRP whales is a key factor bolstering the bullish sentiment. Fortunately, on-chain data shows significant whale accumulation during the recent price dip, with some investors purchasing the crypto in bulk. As noted by Santiment data, XRP addresses holding 1 million to 10 million tokens have purchased over 120 million XRP worth $288 million since December 5.
This accumulation serves a dual purpose. Not only does it prevent further price declines, but it also provides the liquidity necessary for the next upward movement.
At the time of writing, XRP is trading at $2.54.
Featured image from Fortune, chart from TradingView
Text source: NewsBTC
