Crypto analyst Ali has recently highlighted developments in XRP’s price activity and market dynamics. His tweet focuses on whale accumulation, while an analysis of the daily XRP chart reveals key indicators suggesting potential market movements.
Whale Accumulation Drives XRP Activity
Ali reported that large investors, or “whales,” purchased an additional 110 million XRP within 24 hours. The analyst also shared a chart illustrating the correlation between whale holdings and XRP’s price trends.
According to his chart, whale accounts holding 100 million to 1 billion XRP have steadily increased their holdings. This accumulation appears to coincide with an earlier uptrend, marked by large green candlesticks indicating strong bullish momentum.
Following this uptrend, a consolidation phase and subsequent dip were observed, characterized by smaller candles and red candlesticks with long wicks, suggesting buying pressure at lower price levels.
The relationship between whale activity and XRP’s price is evident in the chart, as periods of increased holdings are followed by upward price movements. Analysts believe this accumulation behavior could support prices and potentially mitigate selling pressure.
Read also: Monero (XMR) Price Approaching Resistance: Is a Major Move Coming?
XRP Price Analysis
An analysis of the daily XRP chart on TradingView reveals a clear uptrend that began in early November, with the price climbing from approximately $0.50 to over $2. This rally was driven by increased trading volumes, signaling strong market participation.
However, since early December, XRP entered a consolidation phase, around $2.10 to $2.68. This phase suggests indecision among traders as they wait for a definitive breakout direction.
During the consolidation, the lower boundary around $2.10 has acted as a strong support level, while the upper range near $2.68 aligns with the resistance. If the price breaks above this range, it could trigger a move toward $3.00 or higher. Conversely, a drop below $2.10 may lead to further downside.
XRP Indicators Signal Potential Move
The Bollinger Bands, which widened during November’s rally, have started contracting. This price action indicates reduced volatility and potential for a breakout. Moreover, the price hovers near the lower band, suggesting a possible oversold condition and support around $2.10 to $2.20.
The MACD indicator shows the blue line below the orange signal line, with a negative histogram indicating short-term bearish momentum. However, the shortening histogram bars hint at weakening bearish pressure, signaling a potential trend reversal or stabilization.
Meanwhile, the RSI stands at 55.92, placing XRP in neutral territory. A rise above 60 could signal bullish momentum, while a drop below 50 might suggest further weakness.
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