XRP Soars To 3-Year High As Whale Activity Fuels Price Surge and Dominance
- XRP hits a 3-year high of $1.2679 on Binance, fueled by whale wallets acquiring 453.3M tokens in just one week.
- Retail traders sell off 75.7M XRP, creating an opportunity for large investors to buy at discounted prices.
- XRP dominance could rise from 10% to 20%, with price predictions reaching up to $17.54 per token by cycles end.
XRP has soared to an unprecedented high within the last three years as the digital currency keeps on rising. The digital asset trading on Binance hit $1.2679, the highest it has been since November 11, 2021. This price surge has been driven mainly by the activities of large investors, the so-called whale and shark wallets, who hold between one million and one hundred million XRP tokens. In the past week, these major holders have bought 453.3 million tokens worth about $526.3 million.
Source: Chart by Santiment
Whale Activity Drives XRP Surge
This is in stark comparison to the retail trader who has been on the investing scene for the past couple of months. Small wallets with less than one million XRP have been quick to dump tokens whenever the market starts to rally, leading to 75.7 million XRP being sold in the last week alone, worth around $87.9 million. As for now, the retail traders are selling their tokens, which creates a perfect opportunity for big investors to purchase more tokens at lower prices.
In the past, when some of the major market participants are buying up their tokens during retail FUD, the market has had massive positive price action. This is the current state of token which is currently the sixth largest cryptocurrency in the market.
This is coupled with an increased market dominance of coin prices, which has also been on the rise. According to the analyst at Egrag Crypto, this could rise from 10% to 20%.To this end, the analyst used Fibonacci analysis on two market cycles, one in 2017 and another in 2021.
Fibonacci levels of analysis suggest that a critical convergence zone is at 5.9 to 6% dominance. A close above this range could indicate further upward movement of XRP, meaning that it could head towards other Fibonacci levels such as 0.702 or 0.786. A clean breakout through the 2021 dominance high at Fib 1.0 could see XRP reach new dominance highs of up to 16.69% Fib 1.618 or even 20%.
XRP Dominance and Growth
If XRP retains or even grows its market dominance based on these predictions, the price of Ripple token may also rise greatly. Brad Garlinghouse has dropped the hint that the total market capitalization of cryptocurrencies may well reach $5 trillion by the end of this cycle. If token could take 10% of this total market cap, the price could go up to $8.77. According to analysis, XRP could hit $17.54, given it is dominant by 20%. As of writing, Ripple coin is trading at $1.08, showing an increase of 3.39% over the past day.
Source: TradingView
XRP is on the verge of a major breakout and its price and market share have been indicating an upward trend. In the meantime, as more and more whale investors are buying more coin while retail traders are selling less of it, the market dynamics of Ripple are likely to change dramatically. The next few weeks could be decisive in defining if coin will be able to break through important dominance levels and thus reach new heights.
Read more: https://www.tronweekly.com/xrp-soars-to-3-year-high-as-whale-activity/
Text source: TronWeekly
