Key Points
- Investors are closely monitoring Ripple’s XRP cryptocurrency due to its recent price volatility around $3.00.
- Despite a potential rally to $4, recent whale activity and the delay of XRP’s ETF approval due to the US government shutdown warrant caution.
Ripple’s native cryptocurrency, XRP, is currently attracting investor attention due to its recent price volatility around $3.00. On the technical charts, XRP price is at a critical point, and breaking past this could trigger a rally to $4. However, recent whale activity necessitates caution, leaving investors at a crossroads.
XRP Price Anticipates Key Breakout to $4
Crypto analyst Lark Davis is closely observing XRP’s price movement as the token nears a potential breakout point. Davis suggests that a robust daily candle close above the current wedge pattern’s upper trendline could trigger a move towards the $4 level, indicating a resurgence of bullish momentum for the Ripple cryptocurrency.
EGRAG Crypto, another crypto analyst, also pointed out that XRP is currently trying to secure a strong monthly close within the $3.13–$3.20 range. If XRP maintains this momentum for the next 26 days, it could mark the highest monthly closing price in the token’s history. EGRAG also noted the surprising bearish sentiment among many people, despite the bullish setup.
However, the ongoing uncertainty surrounding the US government shutdown has cast a shadow over the approval of the XRP ETF, along with other crypto ETFs. This delay could further postpone the anticipated rally in the absence of a catalyst.
Recent Whale Activity Calls for Caution
On October 6, Whale Alert flagged a transfer of 18,744,800 XRP from an unknown wallet to one associated with Ripple, valued at approximately $55.87 million. This substantial move has sparked concerns within the community over potential further liquidations.
Despite this transfer, XRP’s price remained stable, reflecting limited support from whales. Data from CryptoQuant’s XRP Whale Flow 30-day moving average indicates that whale flows are still negative, suggesting ongoing distribution pressure on the asset.
Simultaneously, the XRP balance on exchanges has surged sharply, indicating increased selling activity. Over the past seven days, approximately 320 million XRP, valued at nearly $950 million, have been moved to trading platforms.
Analysts have noted that this reflects a shift in investor behavior, with holders preferring to realize short-term gains rather than maintain long-term positions. Such patterns can undermine market stability and impede sustainable price recovery.
