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From Sunday, December 25 to the time of writing, XRP whales have accumulated $2.17 billion worth of tokens. This significant buying activity has fueled speculation that the XRP price could be poised to hit new highs with just days left before the year ends.
However, amid the shopping frenzy, on-chain data shows that some Cryptocurrency whales are also selling. What does this imply for the price of XRP?
XRP Big Whales Buy More, Others Sell
According to Santiment, XRP addresses holding between 1 million and 10 million tokens increased their total balance from 4.85 billion on December 15 to 4.95 billion today, reflecting the purchase of an additional 100 million XRP in the past three days. .
Meanwhile, wallets in the 100 million to 1 billion XRP range increased their holdings from 8.86 billion on Sunday to 9.63 billion, adding 870 million tokens.
With XRP price at $2.50, these “whales” have accumulated a total of $2.17 billion worth of altcoins. This significant buying pressure is often considered a bullish sign, suggesting the potential for a short-term breakout.
However, on-chain data from CryptoQuant suggests that the expected breakout may not happen quickly. This is mainly due to whales’ XRP traffic to the exchange.
The Whale to Exchange Flow Index tracks the movement of large holders transferring funds to or from centralized exchanges, especially Binance. The spike in this index signals a large flow of Tokens to exchanges. Conversely, declines indicate whales withdrawing assets – a typically bullish signal.
Over the past three days, the index has increased from 2,243 to 3,585, indicating a greater flow of XRP Tokens into exchanges. When compared with the whales’ cumulative data, this shows a mix of buying and selling among the whales. However, the accumulated Token volume appears to outweigh the selling pressure. If this trend sustains, XRP price could avoid the bull trap.
XRP Price Prediction: Bull Flag Forms Again, Suggests a Rally to $3.50
TinTucBitcoin’s review of XRP/USD’s daily chart shows that the altcoin has formed a bullish flag. A bull flag is a bullish pattern characterized by two price increases, separated by a short period of consolidation.
The pattern begins with a strong price increase, forming a “flagpole” when buyers overwhelm sellers. It is then followed by a correction, forming parallel upper and lower resistance levels that resemble a flag.
As shown below, the price of XRP is on the verge of breaking the flag’s upper resistance. If successful, the altcoin could rally to $3.50 in the short term.
However, if XRP whales decide to sell in large quantities, this trend could change. If the token also falls below the lower resistance of the above pattern, a drop to $1.98 could follow.
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