XRP, one of the leading cryptocurrencies in the market, has experienced an explosive surge in capital inflows, adding over $4 billion to its market capitalization within the past 24 hours. This sharp growth, which saw its valuation rise from $112.40 billion to $126.74 billion, signals heightened confidence among traders and a promising technical outlook for the token.
Understanding XRP’s Bullish Technical Structure
According to insights shared by cryptocurrency trading analyst Ali Martinez on December 8, XRP is currently trading within a large symmetrical triangle pattern. This configuration, which features a descending upper trendline and a rising lower trendline, suggests reduced volatility as the price compresses toward the triangle’s apex.
Notably, recent price candles have been forming higher lows, indicating strengthening buying momentum. If XRP successfully breaks through the upper boundary of the triangle, technical projections point to a potential 16% rally, which could push XRP’s price beyond the $2.5 mark.
Challenges Affecting XRP’s Long-Term Trajectory
Despite the bullish outlook, on-chain data indicates a significant reduction in whale activity. Over the past week, major holders—those with wallets holding between 1 million and 10 million XRP—have offloaded approximately 510 million tokens. This sustained distribution by whales could potentially amplify market weakness unless retail demand compensates for the selling pressure.
At press time, XRP is priced at $2.09, reflecting a 3% rally over the past 24 hours and a 2% weekly gain. However, to maintain momentum, the asset needs to overcome the $2.15 resistance level. Should selling slow or whales begin accumulating again, XRP may stabilize and initiate a recovery phase, targeting key levels like $2.5.
Looking Ahead: Should You Invest in XRP?
While XRP’s current trajectory and technical structure suggest a promising upside, it remains critical for investors to exercise caution. The volatility of the cryptocurrency market, coupled with significant whale activity, poses risks that shouldn’t be ignored. For beginner and intermediate traders, platforms like eToro offer an accessible way to manage cryptocurrency portfolios while copying the trades of top-performing investors in real-time.
Overall, XRP’s potential breakout may present lucrative opportunities for short-term traders, but its long-term viability will depend on sustained demand and improved whale confidence.
