XRP Whales Fuel Rally with $730M Inflow—Can Bulls Defend $2.50 Support?

Over the past week, whale addresses have accumulated approximately 270 million XRP tokens, valued at around $730 million. This surge in buying activity reinforces bullish momentum and signals investor confidence in XRP’s price trajectory.

Blockchain analytics firm Santiment presents that whale accounts with 10 million to 100 million XRP have actively been accumulating these holdings. These high-net-worth investors accumulating at this specific time frame predict a sustained rally in the price. Traditionally, whale accumulations have shaped the price actions of XRP, tending to lead to important price spikes.

Whales invest $730 million in XRP, sparking speculation on whether it’s headed for a surge or a drop. Source: Donahue George via X

The renewed confidence in XRP follows a shift in investor sentiment. For the first time in thirty days, sentiment indicators have shifted into positive territory, reflecting a growing belief that the cryptocurrency is worth holding for the long term. This is creating greater buying pressure, which will continue to keep XRP’s bull run active in the next few weeks.

At present, XRP is trading around $2.66, attempting to establish this level as a firm support. Should such support be in place, the token can probably use it as a foundation upon which to climb higher resistance zones. The trader is monitoring $2.95 closely as resistance; a breakout above this may propel XRP to $3.00, the next psychological level of resistance.

The XRP price is expected to retest the $3.40 resistance following the current bullish trend. Source: XFRofWealth on TradingView

Technical analysis indicates that XRP’s price movement is in the pattern of an ascending wedge formation, which tends to be a short-term bullish sign. If XRP succeeds in breaking its all-time high mark at $3.40, the token will most probably experience a sustained rally. But if it does not maintain its $2.70 support mark, the token will most probably experience a pullback to $2.33 that will challenge the current bullish formation.

Despite the recent surge in whale buying, technical indicators provide a mixed outlook on XRP’s immediate price direction. On the contrary, short-term moving averages confirm persistent bullish strength, and the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) provide signals of consolidation. The RSI, which is near neutral levels, indicates that the market is yet to enter overbought levels, with some space for further appreciation.

Some technical analysts do not rule out the possibility of XRP’s potential pullback below the $2 support. Source: Nurulk69 on TradingView

Market analysts cite the presence of a bullish divergence on the two-hour chart as well, which may signal a near-term price recovery. Additionally, the formation of a potential cup-and-handle structure on the daily chart indicates a potential for more long-term profits if XRP can break convincingly above the $2.80 level.

While the overall sentiment surrounding XRP remains optimistic, market conditions remain volatile. A failure to hold the $2.70 support level could lead to increased selling pressure, pushing the price toward the $2.50 range. In contrast, if XRP successfully breaks past $2.95, the market could witness further bullish acceleration, with the next major resistance set at $3.20.

Ripple (XRP) was trading at around $2.66, down 0.8% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Broader cryptocurrency market trends will also play a role in XRP’s future price movement. Bitcoin’s ongoing struggle to surpass the $98,000 mark and Ethereum’s battle to maintain momentum above $3,000 could impact the altcoin market’s overall performance. If major cryptocurrencies rally, XRP could benefit from the increased market-wide optimism.

XRP’s recent whale accumulation of $730 million underscores investor confidence in its long-term potential. With the cryptocurrency currently holding above $2.70, bullish sentiment remains strong. However, traders should keep a close eye on key resistance and support levels, as breaking past $2.95 could mark the beginning of a new price rally. Conversely, losing grip on $2.70 may lead to further consolidation. As market conditions continue to evolve, XRP remains a closely watched asset in the crypto space.