While the overall cryptocurrency market remains stagnant, Ripple (XRP) has stood out as a top performer. The XRP/BTC price ratio has surged an impressive +297% since the beginning of November 2024, demonstrating significant bullish sentiment.
Moreover, the number of wallets holding 100,000 XRP or more has increased by 261 in the last 10 weeks, indicating growing confidence among major holders.
But what implications does this hold for the future of XRP?
Upsurge in Whale and Shark Wallets
One notable trend driving Ripple’s price momentum is the rise in holdings among large wallets.
According to data from Santiment, wallets with a minimum of 100K XRP have grown by +0.8% since early December, suggesting that significant stakeholders are preparing for potential future surges and bolstering positive sentiments surrounding the asset.
Comparative Performance of XRP against Bitcoin
Analysis of the XRP/BTC chart reveals that XRP has significantly outperformed Bitcoin in the past 14 weeks. This performance stands in contrast to the broader cryptocurrency market, where most assets have experienced relatively subdued price movements.
The resilience of XRP and the sustained accumulation by large holders raise the prospect of continued momentum, particularly if Bitcoin maintains its current range-bound trajectory.
Is XRP Extended Beyond its Limits?
Against the USD, XRP was priced at $2.6881 at the time of publication, marking a 1.81% decline for the day while upholding its weekly upward trend.
With the 50-day Moving Average (MA) at $2.6778 and the 200-day MA at $2.3202, the trend structure signals a bullish outlook.
However, indications from the Bollinger Bands suggest that XRP may be nearing its upper threshold, hinting at potential short-term volatility.
As of the current moment, the Accumulation/Distribution (A/D) metric sits at 5.98 billion, underscoring persistent buying pressure despite minor setbacks.
If this buying pattern continues, XRP could sustain its bullish trajectory, potentially aiming for the $3.00 mark in the upcoming weeks.
Future Prospects for XRP
Market observers will closely monitor the behavior of significant XRP holders to determine whether they continue accumulating or begin distributing their holdings. Should the trend of increasing large wallets persist, XRP is likely to uphold its upward momentum.
However, a slowdown in whale activity or heightened selling pressure could trigger a corrective pullback towards critical support levels in the vicinity of $2.35.
Given XRP’s notable resilience, investors are advised to keep a close eye on whale wallet movements and the prevailing conditions in the BTC market, as these factors are expected to play a pivotal role in shaping its future movements.