Ripple’s XRP has shown remarkable strength in recent trading sessions, recovering after declining to approximately $2.70, with traders adapting to market factors. On Wednesday, the cryptocurrency rose 6.8% compared to the lows on Monday to reach about $2.94. This increase indicates not only the continuing market recovery but also the increasing confidence of investors, as technical and on-chain indicators suggest a potential rally to $4.
The recent trading behavior of XRP falls under a technical pattern referred to as a symmetrical triangle. This pattern usually indicates a time frame of consolidation and a later consolidation breakout. This pattern usually comes before a price change, whereby the volatility declines in the consolidation period.
For XRP, breaking above the resistance line of the triangle at $3.00 could trigger a new uptrend. The potential peak is $4.08, representing a 42% rise from the current price.
Nevertheless, the price should continue to support itself above the critical price of 2.70 to allow the bullish outlook to continue. Traders are monitoring this level closely because any further drop below $2.70 would trigger additional losses and the next important support level of 2.58.
According to recent data provided by Santiment, whales have been very active lately, as addresses holding coins between 1 million and 10 million bought 30 million XRP in the last few days. These massive holders are currently in possession of about 6.77 billion XRP, which constitutes 11% of the total supply.
This accumulation suggests that whales believe in XRP's future price growth, as they keep buying during dips instead of selling during the recent market downturn.
This activity can help minimize selling pressure and create a floor at the point of support at $2.70 to protect against further price losses. Moreover, the trend of accumulation is correlated with the better market environment, including the decline in leverage ratios and the fall in the volume of futures open on platforms like Binance.
To achieve the expected breakout in the price of XRP, it must face resistance at the key levels. The first one is $3.00, the second could be $3.40, and the eight-year high is $3.84. An effective break over these levels would clear the way to the $4.00 target.
On the negative side, the $2.70 level is still vital. If XRP cannot sustain itself at this point, it may fall to $2.50. Analysts are highly observant of these levels, as they will be crucial in determining whether the bullish trend continues.
Also Read: XRP Price Steady: Could a New Breakout Happen Soon?