XRP’s Bullish Momentum: Whale Activity and Market Insights
Amid tightening supply and increased whale activity, Ripple’s XRP is showing signs of quiet strength. With large transactions surging and exchange balances shrinking, the cryptocurrency market is bracing for potential bullish continuation.
Whale Transactions: Setting the Stage for a Supply Squeeze
XRP is trading near a critical pivot point of $2.30, which has acted as both support and resistance in recent price movements. This strategic level aligns with the 200-period EMA on longer-term charts. Data from Santiment reveals a significant spike in whale transactions, with over 2,800 transactions exceeding $100,000 recorded in early January, marking a three-month high.
These whale patterns often indicate hoarding during dips, signaling confidence in future price rallies. Exchange outflows further reinforce this trend, as fewer tokens on exchanges typically reduce selling pressure and create conditions for a potential supply squeeze.
Historical Parallels: What the Data Tells Us
Crypto analyst CW8900 highlights a historical analogy: in November 2024, XRP saw its reserves on Upbit drop sharply by 0.8 billion tokens, followed by a price surge from $0.50 to $3.29. This past performance suggests that falling reserves could foreshadow bullish momentum.
Currently, XRP reserves on Upbit are declining again, a trend that might drive further demand shocks. South Korean traders, who have historically dominated XRP’s trading volume, are playing a key role in this dynamic. If local demand increases, price volatility and upside potential could expand significantly.
What Lies Ahead for XRP?
If XRP successfully defends its $2.30 pivot point, it could set the stage for a rally toward the $2.50–$2.75 price range. On the flip side, failure to hold this level might lead to profit-taking, potentially driving prices back to $2.00 or lower. With institutional involvement and ETF inflows adding to the mix, all eyes are on whether the current trend sustains its momentum.
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As XRP continues to exhibit bullish signals, monitoring whale activity and supply trends could provide valuable insights for traders and long-term investors alike.
