XRP experienced a rebound from its recent lows, showing a significant increase in price and indicating positive sentiment among investors. The cryptocurrency bounced from Friday’s lows of $2.18, rising as much as 13% to an intraday high of $2.48 on Monday. This upward movement, coupled with strong technical indicators and increased whale activity, suggests that the XRP/USD pair might be poised for a trend reversal toward the $3 mark in the upcoming days.
Whale Accumulation Fuels XRP's Rebound
XRP whales have demonstrated continued confidence in the cryptocurrency's future prospects, utilizing the recent price pullback as an opportunity to accumulate more tokens. Data from Santiment's whale count metric reveals that the number of wallets holding at least 10,000 XRP has reached an all-time high of approximately 317,500. This sustained accumulation by large stakeholders is viewed as a positive long-term indicator for XRP.
Santiment noted in an X post on Saturday that XRP's price had rebounded by a modest +5.3%, emphasizing that the growing number of mid- to large-sized stakeholders is a “good long-term sign.” The market intelligence firm further stated, "XRP now has over 317.4K wallets holding at least 10K coins for the first time in history."
This trend of accumulation by whales aligns with a notable decrease in XRP's supply held on centralized exchanges over the past 30 days, according to data from Glassnode. The percentage of XRP supply on exchanges has fallen from 6.12% to 3.9% between September 19 and October 19. A reduction in exchange balances typically signifies less available supply for immediate selling, which can reinforce the potential for upward price movement.
Crypto investor Black Swan Capitalist commented on X on Sunday, stating, "The majority of XRP on exchanges is already gone. With so little liquidity left, any significant demand will force the market to absorb the remaining supply instantly. Conditions are ripe for a major trend reversal."
In related news, Ripple has announced plans to establish a $1 billion Digital Asset Treasury company, which could further influence XRP's market dynamics.
XRP Price Needs to Reclaim the 200-Day SMA
XRP's price action has been exhibiting characteristics of a potential V-shaped recovery on the daily timeframe since mid-September. This bullish pattern is formed when an asset experiences a sharp price increase following a steep decline, and it is considered complete when the price moves up to the resistance level at the top of the V formation, also known as the neckline.
For XRP to confirm this recovery, bulls must successfully break through the $2.59 resistance level, where the 200-day simple moving average (SMA) is currently positioned. Another significant barrier lies within the $2.81 to $2.95 supply zone, which is delineated by the 50-day and 100-day SMAs, respectively. A successful breach of these levels could pave the way for XRP to target the neckline at $3.40, completing the V-shaped pattern and representing a potential 26% increase from its current price.
XRP analyst Egrag Crypto highlighted key levels to watch, suggesting that a "close above $2.55 to $2.65 on the 3-day time frame would be a strong bullish signal!"
Furthermore, the Bollinger Band width indicator, which traders use to gauge momentum and volatility, has reached its tightest point since June. This suggests that a significant price move may be imminent. The last time the bands were this constricted, XRP experienced a 66% rebound from its multi-year high of $3.66, moving from $2.20. The 20-day Exponential Moving Average (EMA) at $2.63 is identified as a critical level for bulls to overcome; a sustained break above this point could propel XRP's price toward the $3.40 target.