As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull and bear runs. However, the recent developments surrounding XRP have piqued my interest and left me optimistic about its potential upside.
Over the past week, the value of XRP (XRP) has plummeted noticeably, sinking to a minimum of $2.16 on December 5th. Compared to its peak prices over multiple years at approximately $2.90, XRP’s current price stands at $2.39, which represents a decrease of nearly 16%.
Three key factors indicate that XRP could rise even after a dip, such as large investors buying more (whale accumulation), an increase in network usage (increased activity), and a robust overall market situation.
Whale accumulation backs XRP upside
In response to the recent market downturn, large XRP investors seized the opportunity presented by the dip at $2.16 and purchased additional tokens.
According to data from Santiment, there’s been a significant rise in the amount of XRP held by addresses containing between one million and ten million XRP coins, with this increase taking place primarily between December 3rd and December 8th.
Over the specified duration, I’ve observed a significant amassment of around 120 million XRP by these major investors, translating to an approximate value of $288 million at current market rates.
This action highlights the optimism of major investors regarding a potential rise in XRP prices during this market adjustment.
Analyzing the latest transactions involving XRP tokens suggests a noticeable increase in hoarding by major investors. This trend is supported by more frequent withdrawals from platforms like Binance and other centralized exchange platforms, as indicated by Whale Alert’s data.
A whale moved 21.7 million XRP tokens valued at approximately $56.7 million from Binance to an unidentified wallet. This action suggests that the investor may be planning to store their tokens in personal wallets, hoping for further increases in price.
It’s interesting to notice that significant XRP transfers from exchanges are happening at a crucial moment, coinciding with a major change in the ownership structure of XRP.
Notably, there’s been a considerable reduction in the availability of XRP on exchanges, as suggested by CryptoQuant’s data. The graph demonstrates that the XRP held on exchanges dropped by approximately 10% from December 5 (when the price fell to $2.16) to December 8.
This suggests a lack of intention to sell by whales, reinforcing the upside potential for XRP.
XRP Ledger rising adoption to boost XRP price
The number of active accounts on the XRP Ledger has reached its highest point in nearly three years, likely due to a substantial price surge in the XRP token over the past month.
On November 1st, the number of active XRPL addresses was below 20,000. However, as of December 3rd, this figure has surged by over 440%, reaching a total of 108,771 addresses – a level not seen since February 20, 2020.
Over the same timeframe, I’ve noticed a significant surge in transaction volume, with it jumping from 1.4 million to a whopping 3.9 million – that’s nearly double the initial amount!
Transaction count and active addresses are widely used to estimate the number of users interacting with a network. They offer valuable insights into the network’s overall activity and user engagement, serving as a key indicator of blockchain adoption and interaction with the underlying token.
Consequently, this significant increase in these on-chain signals could potentially boost XRP’s worth, fueling anticipation that the token may reach new record highs in the immediate future.
XRP price is the “most powerful chart”
Experienced trader, Peter Brandt, posted a graph predicting a significant surge in the market value of XRP.
According to Brandt, he identified a record-breaking market capitalization for XRP at around $146 billion, which represents the peak of a bullish trend in a weekly timeframe and exceeds the previous all-time high market cap of $128 billion during the 2021 cycle. This chart, as Brandt described it, is considered one of the most influential in the cryptocurrency market space.
On December 3, XRP reached a peak of $2.90; however, this was 38% lower than its previous all-time high of $3.84, which was set on January 4, 2018. Brandit’s analysis has sparked discussions about whether the token can continue to surge and reach even higher record prices.
As a crypto analyst myself, I am quite hopeful that XRP could see a significant rise ahead, with some of my peers even predicting double-digit growth for its price.
According to well-known crypto analyst CrediBull, posted on December 8th, the digital currency XRP has significantly increased by more than 90% against ETH since he predicted it would start showing significant outperformance over both ETH and BTC approximately two weeks ago.
According to the analysis, there’s a possibility that the price of XRP might increase by around 30% in the near future, regaining a significant level and exceeding $3 for the first time since more than half a decade ago.
“At current prices of $ETH ($4000), that would put $XRP at over $5.”
Simultaneously, fellow crypto analyst Steph has pointed out that XRP appears to be breaking free from a bullish “W” shape formation, aiming for prices above $35.
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2024-12-09 16:51