XRP Price Prediction: Falling wedge pattern builds momentum, Whale accumulates 120 million XRP in three days indicating a strong reversal?

Despite the continuous dumping pressure on XRP in September, technical and on-chain data point to a potential significant turning point. XRP is currently trading in a bullish "falling wedge" pattern, successfully holding the key support at $2.73. More notably, Whale investors have accumulated 120 million XRP within 72 hours, showing strong buying confidence. At the same time, the Open Interest in the derivatives market has increased by 3.43% to $7.58 billion, indicating that traders are preparing for the upcoming high fluctuation. The aggregation of signals from technical, on-chain, and derivatives suggests that XRP is likely to break through the resistance level of $3.15, targeting higher levels of $3.38 and $3.65, breaking the long-term Bear Market control.

Price Action and Wedge Patterns: Impending Reversal Signals

(Source: TradingView)

Since the beginning of September, XRP has faced continuous selling pressure on mainstream CEXs, with the Taker Buy-Sell Ratio remaining below 1 for a long time, confirming strong bearish control. However, this ongoing pressure is brewing a potential reversal:

• Bullish Pattern: XRP price has been trading in a falling wedge. This pattern is typically seen as a bullish setup, indicating that momentum will build after a breakout above the resistance.
• Key support: The price has successfully held the support level of 2.73 dollars, while the lower highs continue to decline, forming a compression of price fluctuations, indicating an imminent directional breakout.
• Momentum Indicator: The Relative Strength Index (RSI) is currently around 47, in the neutral zone, providing upward space for the price.
• Potential target: Once XRP breaks through the resistance level of $3.15, its next target will be $3.38, and it may ultimately challenge the higher resistance of $3.65.

On-chain Data: Whales' Large-scale Accumulation Ignites Optimism

The active buying by XRP whales has injected new optimism into the market, effectively countering the recent dumping-dominated trend:

• 120 million XRP accumulation: on-chain analyst Ali Martinez emphasized that Whale investors accumulated up to 120 million XRP within 72 hours.
• Buyer confidence strengthens: This centralized buying behavior usually indicates that large holders have a stronger belief in the price trend, and they are taking advantage of the opportunity created by price compression to build positions at prices below the market average.
• Countering dumping: The continuous influx of funds from whales helps stabilize prices and may gradually offset the selling pressure that dominated the market in September.

Derivation Market: Increase in Open Interest Signals Amplified Fluctuation

The activity in the XRP derivation market also indicates that market dynamics are changing:

• Open Interest Surge: The Open Interest (OI) for XRP has climbed by 3.43%, reaching $7.58 billion.
• Traders are ready: An increase in OI means that a large number of new leveraged positions are entering the market, reflecting traders' expectations of significant fluctuations in price in the short term.
• Bidirectional risk amplification: Although an increase in OI indicates potential price fluctuations, it also intensifies risk. Once the price breaks through, a large number of leveraged positions may be liquidated, thereby amplifying the momentum of the breakout, whether to the upside or downside.

Conclusion

The market for XRP is brewing a significant breakthrough. Despite the selling pressure in September forming a Bear Market backdrop, the falling wedge bullish technical pattern, the large-scale accumulation of 120 million XRP by Whales, and the increase in open positions in the derivation market all point to a potential bullish reversal. The actions of the Whales imply a long-term belief in buying the dip, while the activity in the derivation market suggests that once the breakthrough occurs, price fluctuations will quickly expand. Traders need to closely monitor the resistance level at $3.15; if the bulls can successfully break through and hold, this could signify that XRP has successfully offset the selling pressure and initiated the next round of accelerated rise.

Disclaimer: This article is for market analysis only and does not constitute any investment advice. The cryptocurrency market is highly volatile, so investors should carefully assess the risks.