In light of the ongoing corrections in the cryptocurrency market, influenced by recent shifts in monetary policy in the United States, XRP has experienced a notable price retracement. The digital currency, supported by Ripple Labs, saw its value decrease by over 5% in the past 24 hours, trading at approximately $2.36 during the early European session on Thursday. This large-cap altcoin, with a fully diluted market valuation of around $235 billion and a robust 24-hour trading volume of approximately $20 billion, remains in a phase of consolidation over the last two weeks.
Nevertheless, XRP has signaled the beginning of a significant macro bull run. This bullish momentum was triggered after the cryptocurrency broke free from a prolonged six-year triangular consolidation phase, spurred by a landmark victory for pro-crypto advocates led by Donald Trump in the United States. Additionally, the XRP/BTC trading pair has shown resilience, bouncing back from a crucial support level, amidst a broader awakening in the altcoin market, largely driven by institutional investors.
XRP Whales Accumulate More Coins
Recent on-chain data analysis from Santiment reveals that XRP whale investors—holding balances between 100 million and 1 billion tokens—have significantly increased their holdings. Over the past week, these whales have acquired more than 860 million XRP coins, valued at over $2 billion. This aggressive accumulation by large-scale investors underscores the bullish sentiment surrounding XRP as they continue to bolster their positions.
Betting on Strong Fundamentals
XRP’s growing appeal is closely tied to its association with Ripple and the company’s solid business models. The ongoing legal battle between Ripple and the SEC is anticipated to see favorable developments under the forthcoming Trump administration. In addition, Ripple Labs recently launched its fiat-backed stablecoin, RLUSD, which has garnered substantial support from both centralized exchanges and decentralized finance (DeFi) protocols. The introduction of RLUSD is expected to significantly enhance XRP’s liquidity and strengthen Ripple’s cross-border payment solutions.
Midterm Price Target
From a technical analysis standpoint, XRP has broken out of a bullish pennant flag pattern on the daily chart, formed over the past two weeks. This breakout, coupled with a potential inverted head and shoulders (H&S) pattern, suggests that XRP could rally towards its all-time high, surpassing $3.4, in the near future. However, if XRP experiences a sustained close below the $2 mark in the coming weeks, it could negate the current bullish outlook and potentially prolong the ongoing market correction.
