- XRP is showing strong signs of recovery with increased whale accumulation and a bullish golden cross pattern, supporting a potential rise toward $3.00.
- However, the recent surge in exchange reserves signals possible selling pressure, urging traders to stay cautious.
Ripple’s native token, XRP, has maintained its recovery this week, buoyed by favorable market sentiment and renewed investor confidence. As of Friday, XRP is trading around $2.44, bouncing off Monday’s low of $2.29. This uptick reflects a broader rally in the crypto market, with bitcoin pushing past $111,000. However, despite the strength, rising exchange reserves and other on-chain metrics hint that caution may be warranted.
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XRP XRPWhales Accumulate as Confidence Grows
A key driver of XRP’s current rally has been increased accumulation by large holders. According to Santiment, wallets holding between 10 million and 100 million XRP now account for 12.1% of the total supply—up from 11.88% on May 12. This steady accumulation over the past month suggests growing confidence among whales and signals a belief in further price appreciation.
Exchange Reserves and Volatility Risks
While accumulation paints a bullish picture, another metric tells a more cautious story. XRP exchange reserves have jumped to 2.9 billion coins from 2.7 billion on May 1, per CryptoQuant data. This rise suggests that more XRP is being moved to exchanges, possibly in preparation to sell. Historically, this behavior introduces selling pressure or signals coming volatility, especially when paired with speculative trading.
Market Activity Heats Up
Futures data adds further nuance to the outlook. XRP’s open interest has surged to $4.94 billion, up from $4.59 billion earlier this week. Trading volume has also climbed to $4.63 billion. This rising activity points to growing market engagement and could bolster XRP’s upward trend—provided the enthusiasm continues.
Technical Indicators Point to Strength
On the charts, XRP remains well-supported above major moving averages: the 50-day EMA at $2.30, 100-day EMA at $2.26, and 200-day EMA at $2.06. A higher low formation and RSI above the 50 mark reinforce the bullish case. Moreover, the XRP/BTC pair has printed a golden cross on the weekly chart—the first since 2017. Back then, the pattern preceded a 1,000% rally.
XRP Outlook: Bullish but Mixed Signals Remain
While technicals and whale activity support a potential climb toward the $3.00 mark, the spike in exchange reserves tempers optimism. Traders may want to watch for sustained strength or signs of increased selling as the weekend approaches.
XRP’s rally shows strength, backed by whale accumulation and technical support, but rising exchange reserves suggest traders should remain alert.
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