Historical context – Does purchasing whales lead to sustainable profits?
When analyzing XRP’s historical data, you can see that spikes in whale activity – such as trades over $100,000 and $1 million – are often correlated with price increases.
For example, significant whale buying in mid-2023 preceded a notable rally, but these gains were short-lived and reversed within weeks. Conversely, the whale-driven rally showed a more sustained uptrend in late 2023, with the price stabilizing at higher levels after the peak.
Source: Santiment
This underlines a recurring theme: while whale activity often causes short-term euphoria, long-term price resilience depends on broader market conditions, retail participation and fundamental catalysts.
The continued whale-driven increase should therefore be viewed with caution. Historical precedence suggests a potential for volatility, rather than a guaranteed continuation of the bull run.
XRP – Measuring Breakthrough Potential
XRP’s price action revealed a robust uptrend, with the daily chart highlighting strong support above the 50-day SMA – a level that has consistently acted as a springboard for bullish moves.
The 200-day SMA also looked distant, underscoring the long-term bullish sentiment on the charts.
Source: TradingView
The RSI hinted at bullish momentum without being overextended, leaving room for further upside before becoming overbought. Trading volume has also increased during price increases, confirming genuine interest rather than speculative spikes.
A close above $2.50 – a key psychological and horizontal resistance – could strengthen a breakout, potentially targeting $3.00. However, failure to exceed this level could lead to consolidation. At the time of writing, the technical setup appeared bullish, with continued volume and RSI divergence critical for continuation.
Key insights
Source: Cryptoquant
The active addresses graph highlighted a significant increase in user engagement, with a spike alongside the price increases. This indicated increased interest from private and institutional investors, often a harbinger of volatility.
Meanwhile, the whale-to-exchange flowchart revealed an increase in transfers to exchanges during price increases – indicative of possible profit-taking or market repositioning by large holders.
Source: Cryptoquant
This behavior can be interpreted as a sign of caution, as high inflows on exchanges can exert selling pressure.
While an increase in active addresses indicated broader participation, continued upside momentum depends on reduced whale-induced sell-offs and consistent retail support to absorb liquidity.
Drive high or be careful?
Finally, the Crypto Fear and Greed Index at 74 indicated strong bullish sentiment, approaching “greed” territory. Combined with a surge in XRP’s social volume, the market seemed to be buzzing with heightened interest.
Historically, such high sentiment has often coincided with price spikes, causing euphoria to take hold.
Source: Santiment
While positive sentiment is fueling the ongoing rally, investors should proceed cautiously as sharp corrections often follow when greed dominates.
Sustainable growth will depend on whether this excitement translates into greater adoption and consistent buying pressure, or whether it fades as speculative fervor fades.