The cryptocurrency of digital payment company Ripple, XRP, has caught the attention of crypto investors from its massive surge last week. From the previous pullback support of $1.28, the XRP price rallies 118% to reach $2.785. The high-momentum rally backed by ETF Fillion, whale accumulation, and increased volume hints at the potential for a prolonged rally. Will it sustain?
According to Coingecko, the XRP’s market cap stands at $160.7 Billion, recently surpassing stablecoin Tether. Moreover, the asset 24-hour volume stands at $49.7 Billion, registering a 383% jump since yesterday.
- XRP price rally gains further acceleration as WisdomTreeFunds files an S-1 for XRP spot ETF.
- 160 Million XRP bought by crypto whales since last weekend hints at the large investor’s confidence for further growth.
- The coin price is poised for a temporary dip to recuperate the exhausted bullish momentum.
XRP Price Analysis: Rounding Bottom Breakout Points to $3+
Since last month, the XRP price has recorded a parabolic surge from $0.49 to $2.78, accounting for a 466% growth. The dynamic rally was fueled by broader market growth, the U.S. section result, rumors about the SEC possibly dropping the lawsuit against Ripple, and the ETF buzz.
An analysis of daily life reveals a traditional reversal pattern called the rounding bottom pattern.
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The chart setup typically features a gradual decline in price, forming a rounded trough, followed by a steady rise, creating a “U” shape on the chart.
On December 1st, the coin price gave a massive breakout from the $1.96 neckline of the rounding bottom pattern, accenting a major trend shift. With no weakness in volume, the altcoin is likely to surpass the $3 barrier.
If the pattern holds true, the asset could drive a next recovery push to $3.62, indicating a potential growth of 38.2%.
Ripple Whale Accumulation and EMA Support Levels
Over the weekend, Ripple whales made a significant move by acquiring an additional 160 million XRP tokens, valued at approximately $380 million, according to Alichart’s tweet. The chart highlights a sharp uptick in whale activity, suggesting increased confidence and accumulation among large holders.
While the whale buying hints at the potential for a prolonged uptrend, the momentum indicator surges to the overbought region in the daily chart or mid-term trend. This indicator of XRP price is poised for a temporary pullback to regain exhausted bullish momentum.
#Ripple whales bought an additional 160 million $XRP over the weekend, valued at around $380 million! pic.twitter.com/6AeHwZRVRk
— Ali (@ali_charts) December 2, 2024
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Thus, the coin price could seek support at $2.2 to $1.96, coinciding close with the 20-day Exponential moving average.
