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XRP the price is consolidating after a crazy 460% increase in four weeks that I saw it breaking above $2.8 on December 3 for the first time since 2018. This consolidation caused the price of XRP to fall to $2.22 on December 5 as many investors made some profits after the rally.
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Interestingly, on-chain data shows that XRP whales have taken advantage of this drop to replenish their holdings and essentially prevent further price drops. Keeping this in mind, technical analysis of the coin’s price chart shows that the cryptocurrency is on track to surpass the $5 price level in the next three days.
Technical analysis suggests a breakout to $5.26 by December 11
Amid the backdrop of whale activity and price consolidation, technical analysis now points to the possibility of XRP price breaking above the $5 mark in the next three days. This rally depends on XRP broke through key retracement levels as it did in November.
Interestingly, a crypto analyst (CryptoInsightUK) made a compelling case for the altcoin’s next price target, citing a historical pattern in the asset’s movement. Their analysis, shared on social media platform Once these levels are broken, the price tends to rise rapidly towards the 4.236 Fibonacci extension.
During XRP’s latest breakout, it took just over three days to reach the 4.236 Fibonacci extension after breaking retracement resistance. During that time, the price rose from less than $1.46 to $2.9 on crypto exchanges in three days and 17 hours.
Based on the current price chart, XRP is once again trading between the 0.5 to 0.618 Fibonacci retracement levels drawn from the recent high of $2.9. If a similar trajectory were to occur, this should push the price of XRP to another rally to reach $5.26 on December 11.
Such a move would cause the price of XRP to rise rapidly breaking above its current all-time high of $3.40 that has been standing for almost seven days. Interestingly, analyst CryptoinsightUK suggests that the predicted move could develop even faster this time due to the increased market velocity.
Whale Accumulation Supports Bullish Price Outlook
The behavior of XRP whales is a key factor reinforcing the bullish sentiment. Fortunately, on-chain data shows significant whale accumulation during the recent price drop, and some investors bought cryptocurrencies in bulk. As noted by Santiment dataXRP addresses holding between 1 and 10 million tokens have purchased over 120 million XRP worth $288 million since December 5.
This accumulation has a dual purpose. Not only does it prevent further price declines, but it also provides the necessary liquidity for the next bullish move.
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At the time of writing, XRP is trading at $2.54.
Featured image from Fortune, TradingView chart
