XRP price faces choppy moves today, May 21, with a slight 0.5% dip in 24 hours to trade at $2.38 at press time.
Despite the decline, XRP whales are rapidly accumulating the token after purchasing 110M coins in the last five days.
Moreover, past trends suggest XRP is on the verge of repeating the 2024 trend that sparked a 500% rally.
XRP Price Consolidations as Whales Scoop 110M Tokens
On-chain data shows that whales are currently in an accumulation phase as XRP price stalls within the $2.30 range.
In the last five days, the addresses holding between 10 million and 100 million XRP tokens have increased their holdings from 7.56 billion to 7.67 billion.
The data shows that these addresses have steadily purchased 110M XRP in less than a week, which is a sign of bull positioning as they anticipate a boost in XRP’s value.
Looking at the historical patterns, whales tend to start accumulating shortly before the price makes a strong rebound. Their current behaviour suggests that the price is about to make a bullish breakout from consolidation and possibly rally higher.
XRP Repeats 2024 Bull Pattern, Another Breakout Rally Ahead?
The weekly chart shows that XRP price is on the verge of repeating a 2024 bull pattern that may precede notable gains. In late 2024, XRP entered one of its most iconic bull runs as it surged by more than 500% within months after breaking out of a descending triangle pattern.
Presently, XRP is attempting to repeat the same breakout as it tests the downward sloping resistance line. If a breakout occurs, XRP price will likely surge past $3 soon and form fresh all-time highs.
The RSI is registering gains, albeit smaller ones. This indicator is currently at 55, which shows that the price is in a bullish momentum, making it likely that the altcoin will reach higher levels.
However, for the price to break out of this triangle pattern and extend its gains above $3, the upward trend needs to be strong. Currently, the trend is weak considering the downward sloping ADX line, and this may push XRP to consolidate within the triangle before more buyers step in.
Ripple’s Open Interest Sheds $930M
The derivatives market data from Coinglass shows mixed sentiment towards the XRP price. Derivatives volumes were down by 24 at press time, while Ripple’s open interest has dropped by more than $930 million in the last five days amid liquidations and an unwillingness by new futures traders to open new positions.
Despite this negative outlook, Binance data shows a long/short ratio of 2.97, an indication that long positions are more than short positions, which indicates a bullish bias. At the same time, long traders continue to get rekt with nearly $3M in long liquidations in 24 hours, which is causing additional sell-side pressure.
For a strong bull run that mimics the 2024 price rally, XRP needs to show bullish conviction among traders through a high open interest. If open interest starts to rise again, it will support a bullish breakout past $3.