Here Are Two Factors That Can Rise XRP To $4

While the recent market crash prompted many investors to exit the XRP market, on-chain data reveals that whales seized the opportunity to increase their XRP holdings.

Whale accumulating XRP and Bull flag formation are two factors that can take XRP to $4.

Based on data from Santiment, XRP whales holding between 1 million and 10 million XRP acquired an additional 100 million XRP tokens between December 7 and 10. During this period, the price of XRP dropped by 27.2%, from $2.61 to $1.90.

These whales’ holdings did not decrease during XRP’s downturn. Instead, their cumulative balance rose from approximately 4.71 billion XRP tokens to around 4.80 billion as they deployed an additional $200 million in capital.

XRP Whales Bought 1.1B XRP in 30 Days

This latest accumulation is in line with a consistent trend over the past 30 days, during which these whales have continued consolidating their holdings. In mid-November, their collective holdings stood at 3.71 billion XRP. 

With the current level at 4.8 billion tokens, they have added approximately 1.1 billion XRP to their portfolio within a month. During this period, the asset’s price has risen from around $0.50 to $2.87.

Interestingly, when XRP first reached its seven-year high of $2.87 in the first week of December, these whales took some profit, as illustrated by the slight dip in their holdings. However, they have since used the price dip to buy more XRP at lower prices.

Their savvy move is already paying off gradually, as XRP has risen to $2.43 since the Tuesday crash.

XRP Bull Flag

While market participants expect an uptrend continuation to much higher levels, technical indicators suggest that XRP’s recent comeback may be on hold for a while, with signals pointing to a potential another bearish market.

In a tweet, Ali Martinez highlighted that while XRP’s price patterns continue to form a bull flag, the TD Sequential indicator has presented a sell signal on XRP’s four-hour chart. Based on this, he emphasized that XRP could face another correction before the much-anticipated breakout beyond the $2 price range.

Martinez believes the run toward $4 will begin after the anticipated brief pullback. He first pointed out the potential for a $4 price run on Monday during the dip, noting that the asset was forming a fourth bullish pennant.

Previous instances saw XRP rise from $0.69 to $1.10, followed by a correction and then a resumption to $1.50. The cool-off from this movement eventually propelled XRP to $2.87.

With the current pullback, the next resumption is expected to push XRP to $4.40, according to Ali Martinez.

Notably, as of press time, XRP has already dipped by 4%, touching lows of $2.30 after reaching $2.46 yesterday.