TLDR
XRP price surged 35% last week and 350% since US elections
Whales accumulated $288M worth of XRP during recent dip to $2.22
Active addresses on XRP Ledger reached 100,000, showing increased adoption
Price currently at $2.57 with $148B market cap, ranking 3rd largest crypto
Technical analysis shows $2.3 as crucial support level with potential targets at $3-$3.3
The cryptocurrency XRP has demonstrated robust price action in recent weeks, maintaining its position as the third-largest cryptocurrency by market capitalization. The digital asset has recorded a 35% increase in the past week, contributing to an impressive 350% rise since the US elections.
Market data reveals substantial whale activity during a recent price adjustment. On December 7, wallets holding between 1 million and 10 million XRP acquired approximately 120 million tokens, valued at $288 million. This accumulation occurred as the price temporarily declined from $2.90 to $2.22 between December 3-6.
The whale accumulation has pushed their total holdings to $4.7 billion, indicating strong confidence from large-scale investors. Following this accumulation period, XRP experienced an 18% recovery, climbing back to $2.60 within 48 hours.
Trading volume metrics show mixed signals, with daily trading volume currently at $12.03 billion, representing a 13.70% decrease. However, market analysts note this reduction in volume during price consolidation is not unusual for the asset.
Technical analysis of XRP’s price movement indicates $2.30 has emerged as a crucial support level since December 2. This price point has proven resilient, with buyers consistently defending this zone during recent market fluctuations.
On-chain metrics paint an encouraging picture for XRP‘s ecosystem growth. The XRP Ledger has reached a notable milestone, with active addresses surpassing 100,000 on December 2, marking a yearly high. This increase in network activity suggests growing adoption and usage of the platform.
The surge in on-chain activity represents a shift from previous patterns. According to CryptoQuant analyst Wenry, while exchange transfers dominated transaction volume until Q3 2024, on-chain XRP transactions have now taken the lead.
Infrastructure developments on the XRP Ledger have contributed to increased network activity. The platform has seen improvements in its DeFi capabilities, creating an environment that attracts decentralized protocols similar to established players in the space.
XRP Price on CoinGecko
Layer 2 solution development has also progressed, with projects like The Root Network, XRPL Ethereum Virtual Machine, and XRPL Hooks working to enhance scalability and functionality. These technical improvements aim to expand the network’s capabilities and user base.
Market analysts have identified potential price targets based on current market structure. Technical indicators suggest the possibility of movement toward the $3.00 level, with some pointing to the 2021 cycle top of $3.30 as a longer-term target.
The Relative Strength Index (RSI) on the 4-hour chart remains above the neutral 50 mark, suggesting sustained buying pressure. However, the Chaikin Money Flow (CMF) indicator shows neutral capital flows, indicating a balanced market in the short term.
Liquidation data from Coinglass reveals concentrated positions above $2.60, where leveraged short positions have accumulated. Additional liquidity levels exist at $2.45 and $2.38, which could influence short-term price movement.
Current market positioning shows XRP trading at $2.57, representing a 3.94% increase over the past 24 hours. The total market capitalization stands at $147.98 billion, cementing its position as the third-largest cryptocurrency.
Weekly chart analysis shows strong price momentum with buyers maintaining control according to the Directional Movement Index (DMI). This technical structure supports the possibility of continued upward movement, provided key support levels hold.
Recent blockchain data indicates exchange transfers no longer dominate transaction volume, suggesting increased utility and adoption of the XRP network beyond trading activities.
The post XRP Price Analysis: Major Support at $2.30 Could Propel Token to New Heights appeared first on Blockonomi.