- The recent increase in whale activity has fueled bullish sentiment in XRP, raising questions about the sustainability of these gains.
- Whales bought 360 million XRP in a few days, leading market analysts to debate whether this could lead to a permanent breakout or a short-term rise.
- “Although this euphoria may recall previous trends, historical patterns suggest that such trends may precede significant corrections,” said a COINOTAG expert.
Watch XRP’s price skyrocket as whale activity increases — explore the context and market dynamics shaping the future of this cryptocurrency.
Historical context – Does buying whales produce sustainable returns?
When we examine the historical data of XRP, we can see that the increase in whale activity, such as transactions of more than $ 100,000 and $ 1,000,000, are often associated with price changes.
For example – significant whale purchases in mid-2023 led to a notable rally, but these gains were short-lived and faded within weeks. Conversely, the whale-driven rally at the end of 2023 revealed that prices followed a sustained uptrend after a reversal.
Source: Sentiment
This shows a recurring theme – Whale movements often create short-term excitement, while long-term price resistance depends on broader market conditions, retail participation and fundamental stimulus.
The rally supported by the whale should be viewed with caution – historical examples show that it offers the possibility of change rather than a guarantee of the continuation of the bull.
XRP – Evaluation of the possibility of exit
The price action of XRP made a strong rise, showing strong support above the 50-day SMA on the daily chart – This level has consistently served as an active point for strong movements.
The 200-day SMA can also be seen, which shows the long-term sentiment of the chart.
Source: TradingView
The RSI has shown strong momentum, leaving room for an upside move before buyable conditions emerge. It has been observed that trading volume also increases during price rallies, indicating real interest rather than speculative trends.
A close above the $2.50 level – the main psychological resistance – could reinforce a strong breakout, potentially targeting $3.00. However, failure to exceed this level may call for reinforcement. At the time of writing, the technical structure looks strong, and the constant volume and RSI range are important for continuation.
Important information
Source: Cryptoquant
The table of active titles highlights that there has been a remarkable increase in user participation, which has peaked with an increase in value. This reflects increased retail and institutional interest, which is often a precursor to change.
On the other hand, the chart showing the flow of whale transfers to the exchange revealed an increase in the exchange rate during the price rallies – it can be interpreted as a potential profit or a market position changing for large investors.
Source: Cryptoquant
This behavior can be interpreted as a cautionary sign, indicating that higher stock market movements may create selling pressure.
While the increase in dynamic addresses indicates a broad participation, the continuous growth requires continuous retail support to absorb the decline in whale sales and drift.
Exciting or approaching with caution?
Finally, the Crypto Fear and Lust Index was found at 74, which shows a strong feeling, close to the “lust” zone. With the increasing social volume of XRP, the market seems to be flooded and interesting.
Historically, such high sentiment often coincides with the highest price when enthusiasm emerges.
Source: Sentiment
While positive sentiment is fueling the ongoing rally, it is important for investors to be cautious as sharp corrections often occur when greed becomes dominant.
Continued growth will depend on whether this enthusiasm translates into continued adoption and sales pressure, or fades away as speculative enthusiasm wanes.
Conclusion
In short, although the current rally of XRP looks promising, supported by significant whale activity, it is necessary to take a cautious approach. Historical data shows that such a movement can lead to an increase in price, but it can also lead to a sharp correction. It is important for investors to closely monitor market sentiment, active headlines and trading volume to understand whether this bullish period is permanent or temporary.
