XRP Price Expected to Surpass $5 Within Three Days
The XRP price is consolidating after a 460% surge within four weeks, breaking above $2.8 on December 3 for the first time since 2018. The price dropped to $2.22 on December 5 as many investors took profits.
On-chain data indicates that XRP whales have capitalized on this dip, increasing their holdings to mitigate further price declines. Technical analysis suggests that XRP may break above the $5 price level in the next three days.
Technical Analysis Suggests Breakout To $5.26 By December 11
Whale activity and price consolidation have led technical analysis to predict that XRP could surpass $5 within three days. This potential rally depends on XRP breaking through key retracement levels, similar to its performance in November.
A crypto analyst highlighted a historical pattern where XRP's price tends to find resistance at the 0.5-0.618 Fibonacci retracement levels. Once breached, the price often rallies toward the 4.236 Fibonacci extension.
In a previous breakout, XRP rose from below $1.46 to $2.9 within three days after breaking through retracement resistance. Currently, XRP is trading between the 0.5 to 0.618 Fibonacci retracement levels drawn from the recent high of $2.9. If this pattern repeats, XRP may reach $5.26 by December 11.
This movement would push XRP above its current all-time high of $3.40, which has persisted for nearly a week. Analyst insights suggest this move could occur even faster due to increased market velocity.
Whale Accumulation Supports Bullish Price Outlook
XRP whale behavior is crucial in supporting bullish sentiment. On-chain data indicates significant accumulation during the recent price dip, with some investors purchasing large quantities. Data shows that addresses holding 1 million to 10 million tokens have acquired over 120 million XRP worth $288 million since December 5.
This accumulation prevents further price declines and provides liquidity for the next upward movement.
At the time of writing, XRP is trading at $2.54.
Featured image from Fortune, chart from TradingView