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- Ripple’s XRP: Can It Smash $2.92 and Set a New All-Time High?
Ripple’s XRP has shown resilience this week, with a 7% gain on Friday driven by whale activity, even as retail investors engage in profit-taking. This behavior hints at optimism among major holders, sparking hopes for XRP to rally toward a new all-time high of $3.57.
Profit-Taking Triggers Pullback, But Whales Stay Bullish
After reaching a four-year peak of $2.91 earlier in the week, XRP experienced a 17% pullback over three days. This drop coincided with profit-taking, as investors locked in $5.86 billion in realized gains since December 1, according to the XRP Network Realized Profit and Loss indicator.
The Mean Coin Age metric also highlights rising selling activity among coins held for 2-3 years. While this signals some distribution, it hasn’t dented the broader bullish outlook.
On-Chain Metrics Highlight Whale Confidence
Despite short-term selling, XRP’s Market Value to Realized Value (MVRV) ratio remains at an impressive 388%, suggesting strong profitability for holders. Notably, whales holding 1M–10M XRP tokens increased their holdings by 260M XRP this week, signaling accumulation rather than liquidation.
Additionally, whale transactions exceeding $1M surged to a five-year high, reinforcing their long-term bullish stance. The Age Consumed metric also indicates minimal movement of idle coins, further supporting the accumulation narrative.
Challenges and Opportunities Ahead for XRP
While whales are optimistic, newer XRP investors who entered after the U.S. presidential election might panic sell if prices approach their cost basis. However, XRP’s active addresses hit a 16-month high of 495K, reflecting growing network activity and interest.
Ripple Labs’ CTO, David Schwartz, added to the buzz by expressing hope for the launch of the RLUSD stablecoin by year-end, despite earlier rumors of an imminent launch being quashed.
Price Analysis: $2.92 Resistance Is Key
XRP reclaimed the 23.6% Fibonacci Retracement level after a brief dip, but it must surpass the critical $2.92 resistance to resume its rally. A successful move could propel XRP past its previous all-time high of $3.4, potentially reaching $3.57.
However, the Relative Strength Index (RSI) and Stochastic Oscillator signal overbought conditions, suggesting that a correction could occur before further upward momentum.
Bearish Scenario
A weekly close below $1.96, near the 50% Fibonacci Retracement level, would invalidate the bullish thesis, potentially pushing XRP to seek support near the 61.8% Fib level.
Conclusion
XRP’s trajectory remains optimistic, with whale accumulation and rising network activity offering strong fundamentals. However, overcoming the $2.92 resistance will be crucial for reaching new heights. For now, the market watches closely as XRP navigates a delicate balance between bullish momentum and potential corrections.
