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 approximately $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.