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Ever since the summary judgment in the Ripple vs. SEC case, XRP has grabbed headlines in the crypto market. Now the fourth largest crypto by market capitalization, XRP, is currently experiencing a consolidation trend. However, this may just be the calm before the storm, as evidenced by both the activity of large investors aka whales and the developing Bull Flag pattern.
XRP Whale Wallets Reach New Highs
According to an on-chain data analysis by Sentiment, a leading market intelligence platform, the number of whale wallets holding 100 million or more XRP has seen a significant increase recently, now standing at an impressive 199. These whales, each with a minimum net worth of $74 million, have been closely watched over the past year, exhibiting strategic buying and selling patterns that influence XRP’s price movements.
The recent increase in whale numbers is a remarkable milestone, matching the highest figure recorded since May 13. The sentiment chart below shows in detail the distribution pattern of these whales over the past year. As of July 2022, when XRP was trading below $0.40, 200 whales were in accumulation mode. However, he sold when XRP broke above $0.50 within three months.
Similarly, whales resumed accumulation between December and March 2023 when XRP was trading at $0.41. In April, a significant number of whales sold their XRP again, bringing the number below 200. Currently, the start of a new accumulation phase may be imminent, as suggested by the sentiment.
Bull Flag Initiates New Rally
The recent massive increase in XRP price following the Ripple vs SEC summary decision has led to the formation of a bullish chart pattern known as the Bull Flag. This pattern consists of two rallies separated by a brief period of consolidating retracement. The initial rally stalls due to profit-booking, which limits the trading range once a balance of buyers and sellers is established.
XRP investors will need to keep a close eye on key bull flag price levels that could determine the future trajectory of the cryptocurrency. On the downside, the $0.685 mark is crucial, which represents the 23.6% Fibonacci retracement level. Holding above this level is important for the consolidation trend to continue. If the lower end of the range is broken, a deeper correction could be imminent with possible targets of $0.64 and $0.59.
On the upside, XRP is facing resistance at $0.845. Breaking this level could trigger another bullish rally, although achieving such a breakout may require a catalyst from the current Ripple case or the broader crypto market. The closest target then would be the 38.2% Fibonacci retracement level where the impulsive rally ended after the ripple ruling. Beyond the psychologically important $1 level, the next bullish price targets are $1.13, $1.33, and $1.61.
Featured Image from Binance Academy, Chart from Tradingview.com
