Ripple (XRP) addresses with at least 10 million initial units have accumulated more over the last three months, a similar scenario that preceded the massive rise in XRP / USD and XRP / BTC pairs in late 2020.
Return of XRP “Massive Whales”
The analyst firm Santiment has recorded a 76 percent increase in the number of XRP addresses for “big whales” since December 2021, indicating that it has added a total of 897 million tokens worth more than $ 712 million to its reserves as of February 18.
The platform also highlighted that XRP’s accumulation over the last three months was the second largest in the coin’s history. The first massive accumulation took place in November-December 2020, when the whales sent a total of 1.29 billion XRP to their addresses.
XRP provides addresses that contain over 10 million original devices. Source: Sentiment
This is interesting. The sudden increase in XRP supply on whale addresses coincided with a price jump against Bitcoin. The XRP / BTC exchange rate rose by almost 150% to reach 3502 Satoshi between November 1, 2020 and November 24, 2020.
XRP also strengthened against the dollar as XRP / USD rose above 250% to $ 0.82 in the same period. As a result, the recent whale-led accumulation rally has increased the outlook for a similar upward movement in the XRP market, as indicated by Santiment in the chart above.
However, it should be noted that the massive XRP boom in November 2020 occurred mainly after Ripple bought the $ 46 million XRP to “support healthy markets.”
The XRP price shows a rebound
The recent increase in XRP accumulation among whales was partly seen together with an improvement in recent weeks.
The price of XRP jumped 65% to $ 0.91, less than three weeks after it reached $ 0.55 on January 22, 2022. As of February 18, however, the price has dropped to almost $ 0.77, indicating that speculators are active. higher, they contracted under pressure from the 50-week EMA (50-week EMA; red wave on the chart below).
Weekly XRP / USD chart. Source: Trading View
Cointelegraph discussed a similar setback in its analysis last week, indicating that sales near the 50-week EMA could lead to an extended decline to the 200-week EMA (blue wave) around $ 0.54.
Conversely, the setup also indicated that a decisive move above the 50-day EMA could push the price of resistance to the multi-month downtrend line close to $ 1.
Related: XRP Gets 30% After Ripple Gets Permission to Demonstrate ‘Fair Alert Protection’ Against SEC
The price action on the shorter timeframe charts also indicates an imminent rise towards $ 1. For example, XRP forms what appears to be a bullish pennant on the 4-hour chart, as evidenced by continuous consolidation in a symmetrical triangle.
4-hour XRP / USD chart with a bullish pennant. Source: Trading View
The basic rule for making a bullish pennant is that it pushes the price up as soon as it breaks decisively above the upper trend line of the structure, thus looking for levels above $ 1.