Is XRP about to explode after this surprise accumulation?
Market sentiment surrounding XRP has plunged into extreme fear, reaching levels unseen in 24 months. Currently trading in a range of $1.34 to $1.37, the Ripple token is bearing the brunt of macroeconomic uncertainty. Despite a slight 1.1% increase over the last 24 hours, selling pressure remains palpable. However, on-chain data reveals a completely different dynamic behind the scenes, suggesting that a massive move is brewing.
XRP’s momentum indicator is showing clear signs of improvement, contradicting the general feeling of panic. The RSI is stabilizing around the oversold zone, much like during the previous bear market and the 2023 bottom.
A replay of the 2023 bear market?
Moreover, the current trend for the price of XRP is quite similar to 2022/2023. In the past, XRP retested its major trendline and swept liquidity multiple times before taking off toward a new bull run.
This time around, the trendline sits around $1.85 for XRP. This level could therefore be tested soon. Indeed, the compression of XRP’s weekly candles speaks volumes. If this week’s candle closes in the green, a violent move could form on XRP.
Furthermore, trading volumes have surged by over 27% in 24 hours, reaching $2.24 billion. This divergence between retail investor fear and institutional activity is a formidable bullish signal.
Whales are happily taking advantage of this retracement to build strong positions. Nearly 20 million tokens have been accumulated recently, forming solid support around the $1.28 zone. If XRP manages to break its immediate resistance at $1.44, a major breakout could be triggered toward $1.85. Historically, peaks of extreme fear have often marked the starting point of spectacular reversals in the crypto market.
Analyst CryptoBull highlights the fact that XRP is resting on a major historical monthly trendline. If XRP holds $1.20, the bull run is almost inevitable.
How high can the price of XRP soar in the next rally?
In a bullish scenario, breaking $1.44 would pave the way for a blistering rally toward the psychological zone of $1.80.
The liquidation heatmap indicates major short clusters around $1.40. A break above $1.40 could be explosive given the shorts accumulating above this price. A short squeeze could be brewing for XRP.
Additionally, 4-hour order blocks are forming in succession below the current price, confirming underlying accumulation. Whales and smart money seem to be preparing for a massive move on XRP.
Conversely, if the bearish trend regains the upper hand and the critical support at $1.28 caves under pressure, XRP could slide dangerously toward the $0.75 – $0.80 zone. As volatility compresses and the market holds its breath, an explosion seems inevitable. Will XRP smash through $1.80 or collapse against the sellers?
In conclusion, XRP is bullish in the short term, but the strength of the upside will depend on smart money and whales. Caution is therefore advised. For the long term, there is a high probability that the bottom is in. However, the range and consolidation phase could still last for several months. A DCA strategy with regular profit-taking is therefore the best way to optimize purchases for the long term, which still looks promising for the Ripple token.
Sources:
Related Articles:
