Technical Analysis Puts XRP Price Above $5 In Next 3 Days
Ripple Prices are consolidating After a wild 460% surge in four weeks see it cracked on top On December 3, the XRP price fell to $2.8 for the first time since 2018. This consolidation caused the XRP price to drop to $2.22 on December 5, Many investors took profits After the rally.
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Interestingly, on-chain data shows that XRP whales took advantage of this dip to hoard their assets to essentially prevent the price from falling further. With this in mind, technical analysis of the coin’s price chart suggests that the cryptocurrency is poised to break above the $5 price level within the next three days.
Technical analysis points to a breakout of $5.26 on December 11
Against the backdrop of whale activity and price consolidation, technical analysis now points to the possibility of XRP price breaching the $5 mark within the next three days. This rally depends on XRP broke above a key retracement level, just like it did in November.
Interestingly, a cryptocurrency analyst (CryptoInsightUK) outlines a compelling case Historical patterns of asset movement are cited to determine the next price target for an altcoin. His analysis, shared on social media platform Once these levels are broken, the price tends to quickly rise towards the 4.236 Fibonacci extension level.
During XRP’s last breakout, it took just over three days to reach the 4.236 Fibonacci extension level after breaking through retracement resistance. During this period, the price on cryptocurrency exchanges surged from less than $1.46 to $2.9 in three days and 17 hours.
According to the current price chart, XRP is once again trading between the 0.5 and 0.618 Fibonacci retracement levels drawn from the recent high of $2.9. If a similar trajectory unfolds, this should push XRP price higher again, reaching $5.26 by December 11.
This move will see XRP price rise rapidly Breaking through the current all-time high $3.40 and has lasted almost 7 days. Interestingly, analyst CryptoinsightUK said that the predicted movement may unfold faster this time due to increased market circulation.
Accumulation of whales supports bullish price outlook
The behavior of XRP whales is a key factor supporting bullish sentiment. Fortunately, on-chain data shows that whales have accumulated heavily during the recent price decline, with some investors buying the cryptocurrency in bulk. as mentioned before via sentiment dataSince December 5, XRP addresses holding between 1 million and 10 million tokens have purchased more than 120 million XRP worth $288 million.
This accumulation serves a dual purpose. Not only does it prevent further price declines, it also provides the necessary liquidity for the next uptick.
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As of this writing, XRP is trading at $2.54.
Featured image from Fortune, chart from TradingView
