Strong support from investors, especially whales, gave new bullish momentum and XRP witnessed a sharp rise in price.
The recent recovery in altcoins has gone through a notable accumulation phase, spearheaded by large holders. Their activities strengthened market confidence and also contributed to pushing the price of XRP above $2.50.
XRP holders ease the burden
XRP whales play a key role in driving the asset’s rise. According to on-chain data, addresses holding between 10 million and 100 million XRP have accumulated over 190 million tokens in the past week. This accumulation exceeds $505 million and reflects growing confidence in XRP’s long-term potential.
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The buying spree following the recent price drop suggests that large holders are buying a correction rather than exiting their positions. Such activity is often indicative of the strong beliefs of institutional and high-net-worth investors.
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Broad market momentum for XRP is also showing signs of improvement. Chaikin Money Flow (CMF), an important indicator of capital inflows and outflows, has recorded a notable spike in the past few days. CMF is currently near a three-month high, confirming increased investor participation in both the whale and retail cohorts.
A rise in CMF typically indicates increased buying pressure, and recent readings on XRP confirm that inflows are outpacing outflows. This change suggests that market participants expect continued appreciation.
XRP price needs to secure support
As of this writing, XRP is trading at $2.65 and is attempting to establish a new support floor at $2.64. The token has risen more than 12% over the past week, marking one of the strongest short-term rallies in recent months.
If the bullish trend continues, XRP could extend its rally towards the resistance level at $2.75. Support from investors, particularly whales, could help move assets closer to the $3.00 level, potentially indicating a broader stage of recovery.
However, if XRP faces another selloff or bearish cues in the market, XRP could rebound to $2.54 or even $2.35. Such a decline would invalidate the current bullish outlook and signal short-term investor fatigue.
