XRP (XRP) has been trapped within a tight range over the last eight days. The altcoin trades just above its $2.00 support after a marketwide recovery over the weekend.
Onchain and technical data now show that the XRP/USD pair is well-positioned for a breakout toward $3.00.
XRP whale accumulation is back
XRP’s price has been consolidating between $2.03 and $2.13 since April 14. The daily relative strength index (RSI) remained flat at around 49 over the same period, signaling market indecision.
Despite this sideways price action, whale activity paints a promising picture, with onchain data showing large investors took advantage of the drop to $1.61.
Related: Coinbase Derivatives lists XRP futures
XRP whale addresses holding between 10 million and 100 million XRP (black line) have increased sharply since April 1, according to data from Santiment.
Similarly, addresses holding more than 1 billion XRP (red line) have steadily increased as well. This whale cohort currently accounts for 39.37% of the total XRP supply, compared to 37.67% toward the end of March.
This possibly underscores the confidence of these large investors in XRP price rising despite growing macroeconomic risks and uncertainties.
Additionally, XRP experienced a significant drop in exchange reserves. XRP balance on exchanges peaked at 3.27 billion XRP in November 2024. Today, around 2.7 million XRP are held on exchanges. The metric has also dropped by 10% over the last 30 days despite the market turbulence experienced since the beginning of April.
Can XRP price rise to $3?
XRP’s price action between April 7 and April 22 has led to the formation of a bull flag pattern on the daily chart. The price is retesting the upper trendline of the flag at $2.10, suggesting that a possible breakout is in play.
Note that the price has unsuccessfully tried to rise above this trendline two to three times in the last ten days, with each retest leading to new buyers accumulating around this region.
A decisive close above this trendline could see XRP recover from the current level. It may break out toward the flag’s technical target at $2.93 or the $3.00 psychological level if backed by strong volume.
Several analysts echoed this bullish outlook, citing XRP’s consolidation as a precursor to a significant move upward.
Citing a chart showing XRP price consolidating above $2.00 in the weekly timeframe, popular trader Dark Defender said the altcoin was retesting a key multimonth resistance line.
If this resistance is broken, the price will break out, with Wave 5 playing out toward $4.00.
“The XRP is bullish, and the crypto is more bullish than ever before.”
The key levels to watch are the $2.22 and $2.75 on the upside and the $1.80 and $1.61 on the downside, according to the analyst.
Meanwhile, fellow trader CasiTrades said that the rejection at $2.24 implied that the price is likely to sweep major support levels around $1.90 or $1.55 before “XRP is ready to break out.”
As earlier reported by Cointelegraph, Wyckoff reaccumulation and falling wedge patterns are painting a bullish target for XRP above $3.50.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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