XRP is currently in an intriguing phase as whales have recently amassed a staggering 40 million tokens in just 24 hours. This sudden spike in whale activity comes at a critical moment when XRP is facing a market correction and the ongoing challenge of breaching the $3 resistance level.
At the moment, XRP is valued at $2.24, reflecting a modest increase of more than 1% over the past day. However, the last week has not been kind to the Ripple-affiliated token, which has seen its value plummet nearly 17%.
Recent reports emphasize that the buying frenzy from these whales sends a powerful signal of confidence in XRP’s potential for recovery. Notably, on December 19, the market recorded a staggering $7 billion outflow from XRP, showcasing the wider trend of selling pressure that has impacted many assets.
As we look ahead with an optimistic lens, history suggests that significant accumulation by whales typically precedes price increases. The use of AI tools, specifically OpenAI’s ChatGPT-4o, sheds light on potential price trajectories based on current investor interest and whale activities.
According to the AI analysis, the accumulation effects could manifest within the next week, particularly influenced by the overall market sentiment. Predictions indicate that with increasing buying pressure, XRP might experience a price surge to the range of $2.30 to $2.40 within the next 24 to 48 hours. If this trend continues, there is the potential for XRP to advance further, possibly reaching between $2.50 and $2.60 in the following days, a zone that could see temporary consolidation.
Provided the bullish sentiment remains strong, XRP could challenge the formidable $2.75 and $3 resistance levels within a week, assuming market conditions remain favorable. Conversely, should bearish trends emerge, the price might pull back to find stability between $2.15 and $2.20.
As well, XRP remains affected by external influences, particularly the ongoing case between Ripple and the Securities and Exchange Commission (SEC). Notably, recent movements in the market have been influenced by news surrounding Gary Gensler’s exit from the SEC, which contributed to XRP’s recovery from a prolonged phase below $1.
What comes next for XRP? Investors are hopeful for a sustained upward trend if XRP can consistently stay above the critical support of $2. Even though the recent capital outflows posed a challenge, XRP is still sitting above its 50-day simple moving average (SMA) of $1.61 and the 200-day SMA of $0.81, hinting at potential bullish momentum both in the short and long term.
Additionally, the 14-day Relative Strength Index (RSI) currently sits at 55.19, indicating a neutral stance that slightly favors the bullish side, allowing for further fluctuations in price based on shifts in market sentiment.
In the ever-unpredictable cryptocurrency market, the recent activities and predictions surrounding XRP serve as a reminder of the dynamic nature of trading, reinforced by the notable movements from the whales. Investors should keep a close eye on these developments as they could shape the future trajectory of XRP significantly.
