XRP eyes 27% rally as descending wedge forms and whales accumulate
XRP has fallen about 15% in December and is down roughly 47% from its yearly high, with market cap falling from $210.4B to $113.8B and daily volume dropping from $13.2B (July) to $1.8B (Dec. 26). On-chain and market signals show renewed demand: Santiment data indicates an increase in whale wallets holding 10,000–1,000,000,000 XRP since Dec. 22, and U.S. investors bought $64M of XRP ETFs this week—bringing cumulative ETF inflows to $1.14B and total assets held to over $1.25B with no net outflow days since November. Technicals show a descending wedge on the daily chart; price is testing the $1.90 support/resistance level. A confirmed breakout could target the $2.58–$2.65 zone (~27% upside). Momentum indicators align with a potential reversal: Aroon Down has declined (less selling pressure) and RSI is near oversold levels. Risks remain given lower liquidity and recent price weakness; the article is not investment advice.
Bullish
The article presents multiple short-term bullish signals for XRP: a classic descending wedge pattern that often precedes trend reversals, renewed whale accumulation, and persistent ETF inflows from U.S. investors. Technical confirmation hinge on a breakout above the $1.90 level; if that occurs, the $2.58–$2.65 zone (~27% upside) is a realistic near-term target. Momentum indicators (Aroon Down falling, RSI near oversold) support a reduction in selling pressure and potential rebound. Historically, sustained whale accumulation plus ETF inflows have supported short- to medium-term rallies in other assets by improving liquidity and sentiment (e.g., periods after ETF approvals for Bitcoin). However, important caveats temper the outlook: overall liquidity and daily volume have materially declined, increasing volatility and risk of false breakouts. Therefore traders should watch confirmation (volume on breakout, continued inflows, on-chain whale behavior) and manage risk with tight stops or scaled positions. In summary: likely bullish in the short term if breakout is confirmed and inflows continue; longer-term direction still depends on broader market liquidity and macro factors.