- XRP’s breakout rally pushed the altcoin towards its 2021 high.
- Massive whale interest triggered this rally
Following a steady rise since December, XRP has now experienced a strong upward trend, resulting in approximately 30% growth. Interestingly, data from blockchain analysis firm Santiment suggests that this surge was partially driven by an increase in large-scale investors (whales) buying more XRP.
Over the past two months, I’ve observed a significant surge in the demand for XRP as large-scale investors, often referred to as ‘whales’, have accumulated approximately 1.43 billion tokens, equating to nearly $4 billion. This represents a substantial 37% increase in demand compared to previous periods.
Can whales extend the rally past its 2021 peak?
30% surge propelled XRP beyond its highest point in the 2021 cycle, reaching $3.2. This development also means that those who purchased at the 2021 peak have now recovered their initial investment. But the question remains: could it reach even greater heights?
On a day-to-day price graph, it appears that XRP may finish its upward trend, reaching approximately $3.4, given the size of the triangle formation in its current market pattern. If this happens, XRP would surpass its previous highest value ever recorded.
Yet, the pump might provoke profit-taking, causing a temporary pullback before the altcoin aims for further progression. In this scenario, the price disparity and FVG (fair value gap) at $2.8 and the 50-day EMA ($2.5) could lure bulls for potential re-entry points.
According to the Fibonacci retracement levels, we anticipate a potential bullish peak at around $4.3. But it’s important to note that the Relative Strength Index (RSI) for the daily chart has moved into overbought territory, suggesting a possible correction might be imminent. If the price falls below $2.3, it could challenge our bullish outlook.
Liquidation heatmap suggests…
As a crypto investor, I found the liquidation heatmap lending credence to the notion that a cooling off period could be imminent. Notably, significant downside liquidity pockets were detected at $2.9 and $2.8, aligning neatly with the FVG (Fair Value Guide) points indicated on my price chart. In simpler terms, it appears that the FVG might serve as a crucial short-term support level in the near future.
On the positive side, there appears to be an accumulation of liquidity at the recent peak of $3.2. This might lead to a ‘liquidity drain’ exploiting lower levels around $2.8, and a ‘short squeeze’ at $3.2 could potentially drive XRP beyond its previous record high.
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2025-01-16 17:29