XRP Price Analysis: Bull Flag Flashes, Whales Reach New High

XRP Price Analysis: Bull Flag Flashes, Whales Reach New High

The Rising Popularity of XRP in the Blockchain Industry

The legal battle between Ripple and the SEC has brought XRP into the spotlight, capturing the attention of the crypto market. As the fourth-largest cryptocurrency by market capitalization, XRP is currently experiencing a consolidation trend. However, this may just be the calm before the storm, as two factors suggest a potential upcoming rally: the activity of large investors, also known as whales, and the formation of a bull flag pattern.

XRP Whale Wallets Reach New Heights

According to on-chain data analysis by Santiment, the number of whale wallets holding a substantial 100 million or more XRP has recently increased significantly, reaching an impressive 199. These whales, each commanding a minimum value of $74 million, have been closely observed over the past year for their strategic buying and selling patterns that impact XRP’s price movements.

This surge in the number of whales is a noteworthy milestone, matching the highest figure recorded since May 13. A chart provided by Santiment illustrates the distribution patterns of these whales over the past year. In July 2022, when XRP was trading below $0.40, 200 whales were accumulating XRP. However, they started selling when XRP exceeded $0.50 within three months.

Similarly, whales resumed accumulation between December and March 2023 when XRP was trading at $0.41. In April, a larger number of whales sold their XRP again, bringing the number of whales below 200. According to Santiment, a new accumulation phase might be imminent.

XRP whales | Twitter @santimentfeed

Bull Flag Heralds New Rally

The recent meteoric rise in XRP’s price following the Ripple vs. SEC summary judgment has led to the formation of a bullish chart pattern known as the bull flag. This pattern consists of two rallies separated by a brief period of consolidating retracement. The initial rally comes to a pause through profit-taking, resulting in a tight trading range as buyers and sellers find equilibrium.

XRP investors should pay close attention to crucial price levels associated with the bull flag, as they could determine the future trajectory of the cryptocurrency. On the downside, the $0.685 mark is critical, representing the 23.6% Fibonacci retracement level. Holding above this level is crucial for maintaining the consolidation trend. If the lower end of the range is broken, a deeper correction could be imminent, with potential targets at $0.64 and $0.59.

To the upside, XRP currently faces resistance at $0.845. Breaking above this level could trigger another sharp rally, although a catalyst, either from the ongoing Ripple case or the broader crypto market, may be needed for such a breakout. The closest target would then be the 38.2% Fibonacci retracement level at $0.93, where the impulsive rally following the Ripple ruling ended. Beyond the psychologically important $1 level, the next potential bullish price targets would be $1.13, $1.33, and $1.61.

XRP bull flag, 2-hour chart | Source: XRPUSD on TradingView.com

In conclusion, XRP is currently experiencing a consolidation phase in the crypto market, but it could be the calm before the storm. The rise in the number of whale wallets holding significant amounts of XRP and the formation of a bull flag pattern indicate the potential for an upcoming rally. Monitoring the actions of these large investors and the critical price levels associated with the bull flag will be crucial for XRP investors in determining the future trajectory of the cryptocurrency.

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