Between Sunday, December 25, and the time of writing, XRP whales have accumulated tokens worth $2.17 billion. This significant purchase has sparked speculation that XRP’s price could be ready to hit a new high with just a few days left before the year closes.
However, amid the buying spree, on-chain data shows that some crypto whales are also selling. What does this imply for the XRP price?
XRP Big Wigs Buy More, Others Sell
According to Santiment, XRP addresses hold between 1 million and 10 million tokens and have increased their total balance from 4.85 billion on December 15 to 4.95 billion today, reflecting the purchase of an additional 100 million XRP over the past three days.
Meanwhile, wallets in the 100 million to 1 billion XRP cohort grew their holdings from 8.86 billion on Sunday to 9.63 billion, adding 870 million tokens.
At an XRP price of $2.50, these whale accumulations represent a combined purchase of $2.17 billion worth of the altcoin. This substantial buying pressure is typically seen as a bullish signal, suggesting potential for a breakout in the short term.
However, on-chain data from CryptoQuant suggests that the anticipated breakout might not happen so fast. This is basically because of the XRP Whales to Exchange Flow.
The Whale to Exchange Flow metric tracks the movement of large holders transferring funds to or from centralized trading platforms, particularly Binance. A spike in this metric signals an influx of tokens into exchanges. A decline, on the other hand, suggests whales withdrawing assets — a typically bullish sign.
Over the past three days, this metric has risen from 2,243 to 3,585, indicating a higher flow of XRP tokens into exchanges. When compared with whale accumulation data, this suggests a mix of buying and selling among whales. However, the volume of tokens accumulated appears to outweigh the selling pressure. If this trend persists, XRP’s price may avoid falling into a bull trap.
XRP Price Prediction: Bull Flag Forms Again, Hints at $3.50 Rally
BeInCrypto’s assessment of the XRP/USD daily chart shows that the altcoin has formed a bull flag. A bull flag is a bullish pattern characterized by two upward rallies separated by a brief consolidation phase.
The pattern begins with a steep price spike, forming the “flagpole” as buyers overpower sellers. Then, it is followed by a pullback, creating parallel upper and lower trendlines that resemble a flag.
As shown below, XRP’s price is on the verge of breaking above the flag’s upper trendline. If successful, the altcoin might rally toward $3.50 in the short term.
However, if XRP whales decide to sell large volumes, this trend might change. Should the token also fall below the lower trendline of the pattern above, a downturn to $.1.98 could be next.
Disclaimer
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