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Ripple currency The price is strengthening After an insane 460% spike in four weeks I saw it break above $2.8 on December 3 for the first time since 2018. This consolidation brought the price of XRP down to $2.22 on December 5. Many investors received some profits After assembly.
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Interestingly, on-chain data shows that XRP whales took advantage of this decline to store their holdings to essentially prevent further price declines. With this in mind, technical analysis of the coin’s price chart shows that the cryptocurrency is on track to surpass the $5 price level in the next three days.
Technical analysis points to a breakout to $5.26 by December 11
Amid whale activity and price consolidation, technical analysis now indicates the possibility of XRP price crossing the $5 mark within the next three days. This assembly depends on XRP is breaking through key retracement levels as it did in November.
Interestingly, cryptocurrency analyst (CryptoInsightUK) Outline a compelling case For the next target price of the altcoin, noting the historical pattern in the movement of the asset. His analysis, shared on social media platform Once these levels are breached, the price tends to rise quickly towards the 4.236 Fibonacci extension.
During the recent XRP breakout, it took just over three days to reach the 4.236 Fibonacci extension after breaking the retracement resistance. During that period, the price rose from less than $1.46 to reach $2.9 on cryptocurrency exchanges within three days and 17 hours.
Based on the current price chart, XRP is once again trading between the 0.5 to 0.618 Fibonacci retracement levels drawn from the recent high of $2.9. If a similar trajectory occurs, this should push the price of XRP another spike to $5.26 by December 11.
Such a move would cause the price of XRP to rise rapidly Breaking its all-time high $3.40 value which has been there for about seven days. Interestingly, the CryptoinsightUK analyst points out that the expected move could unfold faster this time due to increased market speed.
Whale accumulation supports bullish price outlook
The behavior of XRP whales is a major factor reinforcing the bullish sentiment. Fortunately, on-chain data shows a significant build-up of whales during the recent price decline, with some investors purchasing cryptocurrencies in large quantities. As noted By Santiment DataXRP addresses holding 1 million to 10 million tokens have purchased more than 120 million XRP worth $288 million since December 5.
This accumulation serves a dual purpose. Not only does it prevent further price declines, but it also provides the liquidity needed for the next upward move.
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At the time of writing, XRP is trading at $2.54.
Featured image from Fortune, chart from TradingView