- More than $1 billion in XRP have been transferred to unknown wallets
- XRP’s price action might be replicating 2017’s movement
XRP has gained a lot of traction recently, especially with the crypto community waiting for the U.S SEC to drop its lawsuit. With that in mind, two huge transactions totalling more than $1 billion XRP were made recently. About 320 million XRP worth $703 million and another 160 million XRP worth $351 million were sent to unknown wallets.
Remarkably, SBI VC Trade likely initiated the 320 million XRP transfer. This, after Ripple CTO David Schwartz observed that financial institutions are getting ready to immerse themselves into XRP Ledger ecosystem.
The sheer amount of these moves indicated that institutional moves or serious actions on the XRPL network may be on the horizon.
Will XRP’s price repeat history?
On the monthly charts, XRP’s price action has been replaying 2017’s pattern with almost similar symmetry lately. A green monthly candle followed the six-taps symmetrical triangle consolidation in 2017. This breakout fueled an explosive outbreak, taking it from nearly $0.30 all the way to over $3.
At press time, XRP’s sixth tap was near $2. So, it was compactly curled inside the triangle. Should such a historical fractal play out once again, XRP may break out above $2.50 and trend towards $20. This move may, however, be slowed down by the inability to burst out on the charts.
Source: Steph is Crypto/X
An extended denial on the upper trendline at $2.50 may cause a supply back to $1.20 or down. Of importance, the critical support was at $1.20. An invalidation of this fractal structure could realized on closing the monthly market below this point.
The symmetry of the structure and its compression in volume underlined the possible breakout. However, this would require the confirmation of good close candle above $2.50. An escape or implosion out of this coil may determine the next macro move for XRP.
Can 2024’s Q4 rally be re-ignited?
XRP’s liquidation heatmap highlighted huge clusters developing at around $2.25 and a little above $2.30. This implied that high short liquidations were bound to be instigated in the event of a hike in price. This would push the price further north, igniting a potential rally.
On the flip side, a fall towards $2.15 and $2.10 would indicate massive long liquidity, with the same only fueling the downward volatility. The zone highlighted major liquidity traps where any fast spikes or dumps in price could happen based on momentum.
Source: Coinglass
Should XRP recover above the $2.25-mark, it may close stacked shorts, and reason a squeeze above the $2.30-mark. Conversely, there may be chances of a cascade of more long liquidations in the event of failure to maintain $2.15.
Taking into consideration the value-for-value potential of XRP following the SEC settlement and its position among leading performers since Election Day, recovery to higher zones in 2025 may trigger the bull market once again. This could trigger a rally similar to the one seen in Q4 of 2024, if the price breaks from the wedge.
