- XRP’s breakout rally pushed the altcoin towards its 2021 high.
- Massive whale interest triggered this rally
After consolidating since December, XRP finally fronted a bullish breakout, logging +30% gains. In fact, according to blockchain analysis firm Santiment, part of the upside swing was influenced by a spike in whale accumulation.
The firm stated that XRP whales have snagged 1.43 billion tokens (worth nearly $4B) in the past two months alone – A 37% demand hike.
Source: Santiment
Can whales extend the rally past its 2021 peak?
The +30% rally to $3.2 pushed XRP past its 2021 cycle high. This meant that even those who bought the 2021 top have now broken even. However, can it climb higher?
On the daily price chart, XRP could complete its breakout rally when the price taps $3.4, based on the height of the triangle pattern. In doing so, XRP would effectively cross its all-time high.
Source: XRP/USDT, TradingView
However, the pump could also attract profit-taking and trigger a cool-off before the altcoin attempts extra advancement. In such a case, the price imbalance and FVG (fair value gap) at $2.8 and 50-day EMA ($2.5) could attract bulls for re-entry opportunities.
Based on the Fibonacci retracement tool, the next key bullish target would be $4.3. However, it is worth pointing out here that the daily RSI entered the overbought zone, and a cool-off can’t be overruled. A drop below $2.3 would derail the bullish thesis.
Liquidation heatmap suggests…
The liquidation heatmap supported the potential cool-off idea. The downside liquidity pockets were at $2.9 and $2.8, coinciding with the FVG marked on the price chart. Simply put, the FVG might be a key short-term support.
Source: Coinglass
On the upside, there seemed to be liquidity build-up at the recent high of $3.2. So, a liquidity sweep could tap the lower levels at $2.8, and a short squeeze at $3.2 could fuel XRP above its former all-time high.
