XRP, Ripple Labs’ native token, is poised for upside momentum as on-chain metrics, technical analysis, and recent whale activity point to bullish signals. Recently, a whale transaction tracker, Whale alert posted on X (formerly Twitter) that 22.08 million XRP tokens worth $46.13 million had been transferred from Binance to an unknown wallet.
Whale Buy the Dip adds $46.13 million XRP
This substantial XRP transaction occurred during a period when the overall cryptocurrency market was struggling to gain momentum and had bled significantly. However, this transfer of XRP indicates “buy the dip” activity.
However, yesterday, December 10, 2024, the market downturn caused XRP, along with other cryptocurrencies, to bleed significantly. Despite this, whales and long-term holders remained in check as they did not move their XRP holdings from their wallets to exchanges for a sell-off, according to on-chain analytics firm Coinglass.
$140 million in XRP outflows from exchanges
XRP spot inflow/outflow data shows that exchanges have witnessed significant asset outflows worth $139.5 million over the past three days, while yesterday’s price drop saw a modest inflow of $11 million. This data indicates that long-term holders remain focused on accumulation despite the price decline.
In the cryptocurrency industry, outflows refer to the movement of assets from exchanges to wallets, which is considered a bullish sign because it indicates a potential upward rally and a perfect buying opportunity.
XRP Technical Analysis and Upcoming Levels
In addition to the increasing interest from whales, XRP’s daily chart appears to be forming a bullish flag and pole price action pattern, indicating significant upside momentum in the coming days. However, XRP has held itself above the strong support level at USD 2, which keeps the altcoin bullish, but it is currently facing minor resistance near USD 2.45.
Based on the recent price action, if XRP breaks the resistance level and closes a daily candle above $2.5, there is a strong possibility that it could rise 60% to reach $4.2. However, there is also a chance of an 18% price drop if sentiment shifts to the bearish side.
Current price momentum
At the time of writing, XRP is trading around the $2.40 level and has witnessed a price increase of over 20% in the last 24 hours. However, during the same period, trading volume fell by 8%, indicating lower participation from traders and investors compared to the day before.
