XRP Price Holds Above Key Trendline: Will Whale Accumulation Push it to $3?

XRP Price Holds Above Key Trendline: Will Whale Accumulation Push it to $3?

XRP’s Price Action and Whale Activity Set the Stage for a Potential Rally

XRP has remained in a tight trading range for the past eight days, consolidating just above the $2.00 support level following a marketwide recovery over the weekend. However, onchain data and technical analysis are now suggesting that XRP’s price is positioned for a breakout, potentially reaching $3.00.

XRP Whale Activity Signals Confidence in Price Surge

Whale Accumulation and Shrinking Exchange Reserves Suggest Bullish Momentum

Despite recent sideways price action, XRP’s whale activity presents an optimistic outlook. Whale addresses—those holding between 10 million and 100 million XRP—have sharply increased since April 1, with large investors taking advantage of the drop in price to $1.61.

Onchain data from Santiment reveals that these whales, along with addresses holding more than 1 billion XRP, now account for 39.4% of the total XRP supply, up from 37.7% at the end of March. This uptick in whale accumulation may indicate confidence in XRP’s potential for a price rise, even amidst broader macroeconomic uncertainties.

Furthermore, XRP’s reserves on exchanges have notably decreased. In November 2024, exchanges held 3.27 billion XRP. As of today, that figure has dropped to around 2.7 billion XRP, marking a 10% decrease over the last 30 days. This decline in exchange reserves could suggest increased holding behavior among investors, a key indicator of bullish sentiment.

Bullish Chart Patterns: Can XRP Break the $3 Barrier?

Bull Flag and Strong Support Levels Point to Potential Breakout

XRP’s price action from April 7 to April 22 has formed a bull flag pattern on the daily chart, with the price retesting the upper trendline at $2.10. While the price has failed to break above this line on previous attempts, each retest has been met with new buyers accumulating XRP around this level. This suggests that XRP is in a consolidation phase before a potential breakout.

A decisive close above the $2.10 trendline could push XRP toward the $2.93 technical target of the bull flag or even towards the $3.00 psychological level, provided the breakout is accompanied by strong volume.

Analysts Weigh In: Optimism Surrounds XRP’s Future Price Action

Key Levels to Watch for XRP’s Next Move

Several analysts are maintaining a bullish outlook on XRP, with many seeing the consolidation above $2.00 as a precursor to a major upward move. Trader Dark Defender points out that XRP is retesting a key multimonth resistance line, and breaking this resistance could lead to a Wave 5 rally, potentially pushing XRP’s price toward $4.00.

The key levels to monitor include:

• Upside resistance: $2.22 and $2.75

• Downside support: $1.80 and $1.61

Meanwhile, trader CasiTrades suggests that the rejection at $2.24 may lead to a sweep of major support levels around $1.90 or $1.55 before XRP is ready to breakout.

For now, XRP’s bullish patterns, combined with whale accumulation and shrinking exchange reserves, create a promising environment for a potential rally towards $3.00 and beyond.