Ripple (XRP) has recently experienced price fluctuations, while maintaining its position near key resistance levels, as 'whales' actively accumulate XRP, despite signs indicating a potential market peak forming.
The outlook for reaching an all-time high (ATH) remains very optimistic, although the current market conditions may present challenges for subsequent profit increases.
XRP investors remain optimistic
XRP is currently facing the risk of forming a market peak, with over 95% of the circulating supply in profit. Historically, when such a large percentage of supply is profitable, a market peak often forms, which typically signals a reversal.
However, XRP has proven its resilience against market peaks in the past, maintaining growth momentum without facing significant decline. This unique characteristic of XRP indicates that it may deviate from typical market behavior, and investor optimism may continue to drive its price higher.
Momentum from whale activity
The macro momentum of XRP is being driven by increased activity from whales. Over the past four days, addresses holding between 100 million and 1 billion XRP have accumulated more than 1.2 billion XRP, worth nearly $3.8 billion.
The surge in whale holdings indicates that large investors are confident in XRP's future potential and are preparing for subsequent profits. The recent price drop may have sparked FOMO (Fear of Missing Out) sentiment, encouraging these whales to increase their positions in anticipation of a future price surge.
The price signals for XRP are conflicting
Currently, XRP is trading at $3.26, still 10.8% lower than its ATH of $3.66, which investors are aiming for. The current optimistic sentiment, combined with whale accumulation, keeps the price within a range that could break out.
If the efforts of the whales succeed, the price of XRP could rise to $3.41. If the $3.41 level is established as support, XRP could continue its upward momentum towards the ATH of $3.66. This scenario would signal sustainable growth momentum, with strong support from both large and retail investors. The support level at $3.41 will play a crucial role in maintaining XRP's price growth.
However, if XRP faces bearish signals from the broader market or selling pressure from retail investors, the price could drop to $2.95 or even lower. This would invalidate the optimistic hypothesis and raise concerns about the sustainability of the growth trend.
