Amid Bitcoin’s recovery following the recent clash with the Federal Reserve, XRP has emerged as a standout performer. With a remarkable 10% increase in a single day, marking its second such significant rise in a week, XRP holders are reaping the rewards of their patience. As profits start rolling in, all eyes are now fixed on the possibility of a price breakthrough to $3.
Role of Whales in Price Movements
A substantial $12.68 million in short positions were liquidated within just 24 hours, indicating a resurgence of bullish sentiment for XRP. With an impressive 23% surge in value over the week, XRP stands out among other high-cap cryptocurrencies. This surge is clearly reflected in the price chart.
Through a strong upward movement, XRP has reclaimed three crucial price levels, currently standing at $2.86. This level surpasses its previous peak after the recent elections. For long-term XRP holders, these profits are rapidly accumulating.
What makes this surge above $2.80 significant is that it is not a random occurrence but a result of strategic accumulation. Large wallets holding between 1 million to 10 million XRP have increased their holdings by over 37% in just two months, injecting a substantial $3.8 billion worth of XRP into their portfolios.
Moreover, the buying spree continues as wallets holding 100 million to 1 billion XRP added an extra 1.09 billion tokens to their holdings within a single week.
The coordinated buying efforts of these large players coincided with XRP’s surge post-election, culminating in an impressive 351% price hike to $2.80 within a month.
Their strategy of buying during price dips has yielded significant profits, with these holders now enjoying a remarkable 95% gain based on current market prices. With these influential wallets actively accumulating XRP, the possibility of XRP hitting $12 by the end of Q1 is not far-fetched.
Implications Beyond Numbers for XRP
As XRP’s rally gains momentum, discussions regarding a potential “sell-the-news” scenario will likely emerge. However, investors are cautioned against overreacting. While indicators suggest a potential rally to $12, it is crucial to remember that XRP’s market dynamics can quickly become overheated.
The Relative Strength Index (RSI) has already surpassed 70, though it remains below the 95-level observed during XRP’s previous peak at $2.80.
With the market heating up, fear of missing out (FOMO) may intensify once XRP breaches the $3 mark, posing a challenge for holders to remain patient and avoid panic selling.
It is worth noting that retail investment has not yet returned to its peak levels. The removal of 12 billion XRP from exchanges was a strong indicator of market resilience back then, whereas only 22 million XRP have been withdrawn currently.
Nevertheless, with steadfast investors driving the market and underlying potential still intact, the likelihood of XRP breaking the $3 barrier continues to grow. The upcoming days will be crucial in determining XRP’s trajectory.
While surpassing $3 seems increasingly probable, the real test lies in the ability to hold onto these gains. Patience and resilience will be key for XRP holders amidst the evolving market conditions.