Can XRP Soar Like History As Super Whales Amass?
Ripple (XRP) addresses with at least 10 million XRP have returned to accumulate more over the past three months, a similar scenario occurred ahead of the massive rally for XRP/USD and XRP/BTC by the end of 2020.
Bitcoin Magazine reported a 76% increase in XRP “super whale” addresses since December 2021, showing that they added a total of 897 million XRP (worth over $712 million) on February 18th.
The accumulation of XRP over the past three months is the second largest in history. The first massive accumulation took place from November to December 2020 when whales collected up to 1.29 billion XRP.
Interestingly, the increase in XRP supply at whale addresses coincided with a price increase relative to Bitcoin. XRP/BTC price surged almost 150% between November 1st and 24th, 2020 to a high of 3,502 satoshis.
XRP also gained against the dollar as XRP/USD surged more than 250% to $0.82 over the same period. As a result, the recent increase in whale-led accumulation has raised the possibility of a similar uptrend in the XRP market.
However, it is important to note that XRP’s massive boom in November 2020 was mainly due to Ripple’s $46 million purchase of XRP to “support a healthy market.”
Is XRP Rising Like History?
The recent XRP accumulation from partial whales has accompanied the rally over the past few weeks.
XRP price surged 65% to $0.91, less than three weeks after its bottom of $0.55 on January 22, 2022. However, since February 18, it has fallen back to almost $0.77, which is what shows that the bulls are under pressure from the 50-week exponential moving average (red wave on chart below).
Weekly XRP/USD frame price chart | Source: TradingView
Bitcoin Magazine discussed a similar pullback setup in his analysis last week, suggesting that a sell-off near the 50-week EMA could trigger an extended move down towards the 200-week EMA (blue wave) near $0.54 .
Conversely, it also suggests that a decisive move above the 50-day EMA can propel the price to multi-month descending trendline resistance near $1.
Price action on the shorter time frame charts is also suggesting an imminent rally towards $1. For example, XRP has formed a bullish pennant setup on the 4-hour chart, which is confirmed by an ongoing consolidation inside a symmetrical triangle.
XRP/USD 4 hour chart There is a bullish flag setting | Source: TradingView
A basic rule of the bullish pennant setup is that it will propel the price higher on a final break above the structure’s upper trendline and thus keep an eye on levels above $1.
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