XRP Whale Accumulation Drives 10% Decrease in Exchange Reserves

XRP has been exhibiting signs of a potential breakout towards the $3.00 mark, driven by several key factors including whale accumulation, decreasing exchange reserves, and bullish chart patterns. The cryptocurrency has maintained a range above the $2.00 support level following a positive market move over the past weekend, setting the stage for a potential surge.

Whale activity has been particularly noteworthy, with large investors capitalizing on price dips to accumulate more XRP. On-chain data indicates that addresses holding between 10 million and 100 million XRP have increased significantly since April 1. Additionally, addresses holding over 1 billion XRP are also on the rise, suggesting growing confidence among this investor class. Their cumulative holdings now account for approximately 39.37% of the total XRP supply, up from 37.67% at the end of March. This shift in supply underscores a healthy accumulation trend among large investors.

The decline in exchange reserves further supports this bullish outlook. XRP exchange supplies peaked at 3.27 billion in November 2024 but have since decreased to around 2.7 million. This 10% decrease in reserves over the last month signals increased holding patterns by investors, reflecting a robust outlook for the cryptocurrency amidst prevailing macroeconomic headwinds.

Technical analysis also points to a bullish pattern known as a bull flag, formed by recent price movements from April 7 to April 22. As XRP attempts to break through the upper trendline at $2.10, traders are closely monitoring the potential for a breakout. The asset has faced multiple rejections at this key price level over the last ten days, yet new buyers continue to enter the market, accumulating XRP at these levels. A decisive close above the upper trendline could catalyze a move towards the technical target set by the flag pattern, potentially leading XRP to approach $2.93, or even the psychological resistance of $3.00 if fueled by sufficient trading volume.

Analysts support this bullish interpretation. Popular trader Dark Defender noted that XRP has been retesting a crucial multi-month resistance line while consolidating above $2.00 on a weekly basis. “If we break this resistance, we could be looking at a price surge towards $4.00,” he added emphatically. Key levels to monitor include $2.22 and $2.75 for bullish momentum, while critical support levels are identified at $1.80 and $1.61, providing a calculated outlook on potential price movements. In a similar vein, trader CasiTrades suggested that the recent rejection at $2.24 implies XRP might revisit major support zones around $1.90 or $1.55 before a breakout scenario unfolds.

Moreover, earlier analysis proposed that reaccumulation patterns alongside the formation of a falling wedge indicate an optimistic target for XRP that could exceed $3.50, showcasing the strong bullish thesis surrounding this cryptocurrency. In summary, the accumulation trend among whales and bullish technical indicators bolster XRP’s prospects of rising toward the $3.00 mark. While key resistance levels pose challenges, the underlying market dynamics present a cautiously optimistic outlook for XRP as new buyers continue to show interest. As the crypto market remains volatile, significant movement above critical levels could pave the way for XRP to establish a more substantial upward trajectory.