XRP Price Eyeing $0.85 As Whale Activity Reaches 3-Month High
As the price grows so does the on-chain whale activity. Is this a sign of further price growth?
Key Takeaways
- On-chain data show a high whale activity.
- XRP rose by 29% since October 19.
- Chart analysis points to more upside.
The recent surge in XRP‘s value highlights the dynamic and ever-changing nature of the cryptocurrency market. In just 12 days, XRP has witnessed an impressive 29% increase, soaring from $0.4771 to a noteworthy $0.6209.
This peak marks the highest value observed in over two months, accompanied by a significant uptick in activity from prominent investors, often referred to as ‘whales.’ Notably, these large investors have been exceptionally active, with transactions exceeding $1 million reaching a three-month peak.
Considering these developments, the question arises: Is there potential for further price growth in XRP, possibly leading to the coveted $0.85 mark?
On-chain Data
The analytics firm Santiment has brought attention to this surge in whale activity, noting a historic increase in the number of wallets containing over 10,000 XRP. Traditionally, such market movements tend to foreshadow substantial price changes, indicating that the actions of these investors may signal a persistent bullish trend for XRP.
Furthermore, Ripple, the closely associated company with XRP, has been actively managing its holdings. They recently released 1 billion XRP from escrow through a series of transactions at the beginning of the month. But Ripple’s involvement doesn’t stop there; they have also been transferring substantial amounts of XRP to various wallets and exchanges. These actions typically have an impact on market liquidity and influence investor sentiment.
This flurry of activity from both Ripple and XRP whales has generated a sense of anticipation in the market. Both observers and participants are closely monitoring these developments, speculating about whether the increased interest and investments from major players could potentially propel XRP to greater heights, even reaching the coveted $0.85 milestone.
As the situation continues to evolve, the cryptocurrency community remains vigilant, eagerly awaiting the potential consequences of these market dynamics on XRP’s value.
XRP Price Analysis
XRP‘s value has been on a rollercoaster ride, marked by substantial peaks and troughs. Following its record high of $3.50 on January 4, 2021, XRP experienced an extended bearish period, dropping to a low of $0.10 by March 13, 2020. While 2021 brought a resurgence that pushed its price just above $2 on April 15, it still fell short of reclaiming its previous historic peak.
Following the April 2021 peak, XRP underwent a significant downturn, with its value dropping to $0.285 by mid-June 2022. In June of the current year, there was a brief rally that propelled the token to $0.92. However, this upswing was short-lived, as the price experienced a sharp 50% decline from that point, stabilizing at $0.46 on September 11.
XRP’s price pattern has taken on the appearance of a symmetrical triangle, suggesting a potential WXYXZ correction when viewed through the lens of Elliott Wave Theory. The upper boundary of the triangle can be traced back to the all-time high, while the lower boundary aligns with the March 2020 low. It’s noteworthy that the dip in September adhered to this ascending base trendline, and the price rebounded by 18.5% to $0.54 on October 1.
The rebound on September 11 may signify a crucial turning point for XRP. If the current wave, identified as wave Z, continues to respect the supportive trendline, it could trigger a sustained bullish trend for XRP. This potential scenario might see the token challenging and even surpassing its prior highs, ushering in a new phase of growth for the cryptocurrency.
XRP Price Prediction
Today’s peak ended on the 1.618 Fibonacci extension level from the previous upward move which is a typical ending point of wave 3. Now, as the price appears to be slowing down in momentum, it could undergo a consolidation which would be its wave 4.
This suggests that while we might anticipate another higher high, it is likely to be limited to around $0.70 at most. The truly significant threshold is at $0.85, as a breakout beyond the descending resistance at this point would mark the initiation of the next substantial bullish phase.
Furthermore, if the price establishes a five-wave pattern during this progression, it could serve as an early indication of an impending bullish phase.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
