XRP continues its steady recovery from recent price declines, showing strong upside potential. The altcoin is on an upward trend, supported by the movements of “whales” – large wallet holders who have a significant influence on price action by accumulating huge amounts of the token.

Whales are preparing to rise

The data suggests that addresses holding between 10 million and 100 million XRP continue to actively buy. These investors have accumulated around 270 million XRP worth around $730 million in the past week alone. This accumulation reflects strong confidence in the future of the cryptocurrency, especially since the influence of these large investors on price movements is significant.

These “whales” seem confident that XRP is about to make additional gains. The intense buying activity suggests that they expect the recovery to continue and break the current resistance levels. As they continue to accumulate, they are strengthening the bullish momentum, paving the way for potential price increases in the coming days.

Positive shift in overall momentum

XRP’s overall momentum has taken a positive turn, with sentiment rising significantly for the first time in a month. While investors have been cautious over the past few weeks, this positive shift reflects increased confidence in the currency’s recovery and signals an uptick in buying activity.

This improvement in investor sentiment could push the price of XRP towards a strong upward movement. A positive shift could encourage more participants to enter the market, adding additional support to the recovery and pushing the coin towards new highs.

XRP Price Targets $3

XRP is currently trading at $2.70 and is looking to establish this level as a support floor. Securing support at this level is a crucial step to maintain the upward momentum. Breaking the resistance level at $2.95 and converting it into support enhances the possibility of further gains.

Although the rising wedge pattern formed by the price is usually considered a bearish signal in the long term, it could show a bullish breakout in the short term. If the currency succeeds in surpassing its all-time high at $3.40, it could continue to rise to higher levels.

However, if XRP fails to hold the $2.70 level as support, it could face a sharp pullback towards the next support level at $2.33. This would invalidate the current bullish pattern and postpone or even reverse the expected recovery. Future XRP Performance Expectations

The bullish outlook for XRP price remains tied to its ability to hold key support levels and break above crucial resistance levels. Traders and investors are closely watching the price action around the $2.70 level, as this level serves as the first line of defense to maintain the uptrend.

If XRP can break above $3 and confirm this level as new support, it could boost market confidence and attract more investors to enter, pushing the coin towards new record highs. On the other hand, if the coin sees a decline to $2.33, it could trigger a sell-off that could negatively impact the upward momentum.

The role of the broader market and influential events

The impact of external factors on XRP’s performance cannot be ignored, including the movement of the cryptocurrency market in general and news related to legislation and regulations. Also, developments in the legal cases of Ripple, the company behind XRP, may play an important role in determining future price trends.

Also, the continued adoption of cryptocurrencies and increased institutional use of XRP in cross-border payment and remittance solutions could boost its market value.

Possible Trading Strategies

For investors who want to take advantage of this upward momentum, strategies such as:

Gradual accumulation: Buying small amounts at different intervals to avoid the impact of price fluctuations.

Buy on correction: Taking advantage of price pullbacks to enter at better prices.

Set stop loss levels: to protect capital in case the trend reverses.

Conclusion

XRP looks well positioned for additional gains if it can hold the support at $2.70 and break above $3. However, investors should be cautious and monitor price action and external factors influencing it.

Ultimately, investing in cryptocurrencies is inherently high risk, and it is always essential to do research and analysis before making any investment decisions.