The price of XRP (XRP) has fallen significantly over the past seven days, reaching a low of $2.16 on December 5. The price of XRP has fallen 16% from a multi-year high of around $2.90 to the current $2.39.
XRP/USD daily chart. Source: Cointelegraph/TradingView
Despite the decline, there are three key data points supporting XRP’s upward trend: whale accumulation, increased network activity, and a strong market setup.
Whale Accumulation Supports XRP Rise
In response to last week’s market correction, XRP whales took advantage of the drop to $2.16 and bought more tokens on the decline.
According to data from Santiment, the number of tokens held by whale addresses holding between 1 and 10 million XRP increased sharply between December 3 and December 8.
These large investors accumulated approximately 120 million XRP worth approximately $288 million during the same period.
Tokens held by addresses between 1M and 10M XRP. Source: Santiment
This move highlights the confidence of large investors in the prospect of XRP price rising during the current correction.
A closer look at the recent movements of the XRP token reveals heightened accumulation among large investors. This is evidenced by an increase in withdrawals from Binance and other centralized exchanges (CEXs), according to data from Whale Alert.
This includes a whale that transferred 21.7 million XRP tokens worth $56.7 million from the Binance cryptocurrency exchange to an unknown wallet. These transfers are likely part of investors’ intention to store tokens in self-custodial wallets in anticipation of further price increases.
XRP token movement on CEX. source: whale alert
The timing of this significant XRP transfer from exchanges is noteworthy as it coincides with a significant shift in the distribution of XRP holdings.
In particular, as data from CryptoQuant shows, there has been a significant decline in XRP supply on exchanges. The chart below shows that XRP balances on exchanges decreased by 10% between December 5 and December 8, when the price fell to $2.16.
The exchange’s XRP holdings. source: CryptoQuant
This signals a lack of selling intent from whales and strengthens XRP’s upside potential.
Increased adoption of XRP Ledger to boost XRP price
Active addresses on the XRP Ledger (XRPL) have hit a 33-month high due to significant price increases of the remittance token over the past 30 days.
XRPL had fewer than 20,000 active addresses on November 1. This indicator has increased by more than 440% to 108,771 addresses on December 3, a level last seen on February 20, 2020.
XRP ledger active address. source: CryptoQuant
During the same period, the number of transactions also increased by 190% from 1.4 million to 3.9 million.
Transaction counts and active addresses are widely used to estimate the number of users interacting with a network. It provides valuable insight into the network’s overall activity and user engagement, and serves as a key indicator of blockchain adoption and interaction with its native token.
Therefore, a notable rise in these on-chain metrics could push the value of XRP higher, sparking speculation that the token could hit all-time highs in the near term.
relevant: Why did XRP price rise today?
XRP Price Is “The Strongest Chart”
Veteran trader Peter Brandt shared a chart predicting a significant increase in XRP’s market capitalization.
Brandt confirmed the XRP market cap at $146 billion, which he described as “the most powerful chart” in the cryptocurrency industry. This is an all-time high and a bullish target for the weekly asymmetric triangle. This is higher than the 2021 cycle’s all-time market capitalization of $128 billion.
source: peter brandt
XRP’s rise to $2.90 on December 3 was 38% lower than its all-time high of $3.84 recorded on January 4, 2018. Brandit’s analysis led to a conversation about the token’s ability to sustain its price rise to new all-time highs.
Crypto analysts remain optimistic about XRP’s upside potential, with some setting double-digit targets for the price.
Popular cryptocurrency analyst CrediBULL posted on “I did it,” he said.
The analyst pointed out that XRP could rise 30% in the near term, regaining a key range and surpassing $3 for the first time in six years.
“Based on the current price of $ETH ($4000), the price of $XRP is over $5.”
XRP/ETH 4-hour chart. source: credit
Meanwhile, fellow analyst Steph Is Crypto shared an article showing XRP breaking out of a bullish “W” pattern with a target set above $35.
source: Stephanie is cryptocurrency
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.