XRP has started the new year on a strong note, as the price increased by 10% in the last 24 hours. This rally comes amid 350 million XRP accumulation within the last two days.
Following this, on-chain data points to further bullish momentum, suggesting that XRP upswing may not be over. Here’s what could be next for the cryptocurrency.
XRP Holders Starts 2025 by Buying in Large Volumes
On December 31, 2024, the value of XRP was $2.12. As of this writing, it has risen to $2.36, making it the highest gainer among the top 10 cryptocurrencies.
According to BeInCrypto’s findings, this price increase could be linked to significant XRP accumulation. Santiment data reveals that addresses holding between 100 million and 1 billion XRP increased their total balance from 9.36 billion on Tuesday to 9.71 billion today — a purchase of 350 million tokens valued at $826 million.
Such large-scale accumulation typically indicates strong buying pressure, and if the trend continues, XRP’s price could see further upward momentum.
Besides this buying pressure, on-chain data shows a significant hike in the cryptocurrency’s social dominance. Social dominance, as the name suggests, measures the level of attention the market gives a cryptocurrency.
When it increases, it indicates that there is a high level of discussion around the token compared to other assets in the top 100. However, a decline implies otherwise.
At press time, XRP’s social dominance had risen to 5.61%, suggesting that demand for the token might increase if it sustains the attention it is currently receiving. If that is the case, the XRP price is likely to begin this year’s first month above $3.
XRP Price Prediction: Bullish Momentum to Continue
With XRP closing the year above $2, the daily chart shows that the altcoin has formed a bull flag. The bull flag pattern, resembling a flag on a pole, is considered a significant signal when analyzing a cryptocurrency.
It forms after a strong upward trend, followed by a brief consolidation. This often leads to another sharp price surge as investors anticipate continued upward movement. Typically, when the price breaks below the flag, a correction happens. But in this case, XRP’s price has broken above the flag, suggesting that the altcoin’s value might rise to $3.25.
If XRP accumulation intensifies in large volumes, the price could be higher. However, if the token experiences notable selling pressure, the trend might change, and the price could decline to $1.80.
Disclaimer
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