XRP (XRP) price has dropped significantly over the last seven days, dipping as low as $2.16 on Dec. 5. Its price is down as much as 16% from its multi-year highs of around $2.90 to the current levels of about $2.39.
XRP/USD daily chart. Source: Cointelegraph/TradingView
Despite the pullback, there are three data points supporting XRP’s upside, including whale accumulation, increased network activity and a strong market setup.
Whale accumulation backs XRP upside
Responding to the market correction over the last week, XRP whales took advantage of the drop to $2.16 and bought more tokens in the dips.
Data from Santiment shows that the number of tokens stored at whale addresses holding between 1 million and 10 million XRP increased sharply between Dec. 3 and Dec. 8.
These large investors accumulated about 120 million XRP, worth around $288 million, over the same period.
Tokens held by addresses with between 1M and 10M XRP. Source: Santiment
This move underscores these investors’ confidence in the future prospects of higher XRP prices amid the current correction.
A detailed look at the recent movements of XRP tokens reveals the heightened accumulation among large investors. This is evidenced by increased withdrawals from Binance and other centralized exchanges (CEXs), according to data from Whale Alert.
That includes a whale’s transfer of 21.7 million XRP tokens worth $56.7 million from the Binance crypto exchange into an unknown wallet. This transfer was likely part of the investor’s intention to keep their tokens in self-custody wallets in anticipation of further rises in price.
XRP tokens movement from CEXs. Source: Whale Alert
The timing of these substantial XRP transfers from exchanges is noteworthy, as it aligns with a critical shift in the distribution of XRP holdings.
Specifically, there is a substantial decrease in the XRP supply on exchanges, as evidenced by data from CryptoQuant. The chart below shows that the XRP balance on exchanges dropped by 10% between Dec. 5, when the price dipped to $2.16, and Dec. 8.
XRP reserve on exchanges. Source: CryptoQuant
This suggests a lack of intention to sell by whales, reinforcing the upside potential for XRP.
XRP Ledger rising adoption to boost XRP price
Active addresses on the XRP Ledger (XRPL) have hit a 33-month high following the remittance token’s significant price increase in the last 30 days.
XRPL’s active addresses were less than 20,000 on Nov. 1. This metric has increased by more than 440% to 108,771 addresses on Dec. 3, levels last seen on Feb. 20, 2020.
XRP Ledger active addresses. Source: CryptoQuant
The number of transactions also increased by 190% from 1.4 million to 3.9 million over the same period.
Transaction count and active addresses are widely used to estimate the number of users interacting with a network. They offer valuable insights into the network’s overall activity and user engagement, serving as a key indicator of blockchain adoption and interaction with the underlying token.
This notable rise in these onchain indicators may drive XRP’s value higher, sparking speculation that the token might hit all-time highs in the short term.
Related: Why is XRP price up today?
XRP price is the “most powerful chart”
Veteran trader Peter Brandt shared a chart projecting a massive breakout in XRP’s market capitalization.
In what he called the “most powerful chart” in the crypto space, Brandt spotted XRP market cap at $146 billion, an all-time high and the bullish target of an asymmetrical triangle in the weekly timeframe. Note that this is higher than the $128 billion all-time high market cap for the 2021 cycle.
Source: Peter Brandt
XRP’s rise to $2.90 on Dec. 3 fell 38% short of its $3.84 all-time high recorded on Jan. 4, 2018. Brandt’s analysis has led to conversations about the token’s ability to sustain its price rally to new all-time highs.
Crypto analysts remain optimistic about XRP’s potential to move higher, with some setting double-digit targets for the price.
”$XRP is up 90+% against $ETH since I said it is likely to begin some major outperformance over both $ETH and $BTC just over 2 weeks ago,” crypto analyst CrediBULL said in a Dec. 8 post on X.
The analyst noted that XRP could climb by 30% in the short term, reclaiming a key range and surpassing $3.00 for the first time in over six years.
“At current prices of $ETH ($4000), that would put $XRP at over $5.”
XRP/ETH four-hour chart. Source: CrediBull
Meanwhile, fellow analyst Steph Is Crypto shared an article showing XRP breaking out of the bullish “W” pattern with the target set above $35.
Source: Steph Is Crypto
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.