TL;DR:
- XRP is forming an “inverse head and shoulders” pattern, signaling a possible bullish reversal toward $2.52.
- Whale and institutional accumulation has injected nearly $160 million into XRP since January 14.
- A massive imbalance in the derivatives market could trigger a multi-million dollar “short squeeze.”
All eyes are on the sector’s most resilient asset. The latest XRP price analysis indicates that Ripple’s token is at a decisive moment, depending on its ability to replicate a technical move observed four months ago.
For this optimistic scenario to materialize, the asset must firmly reclaim the 100-day Exponential Moving Average (EMA). This level generally acts as a critical pivot; in September, recovering this line resulted in gains of up to 16%, fueling the hopes of current investors.
Whale Accumulation and the Derivatives Factor
Beneath the surface of daily volatility, on-chain data reveals strategic positioning by large holders. Wallets containing between 1 million and 100 million XRP have significantly increased their balances, showing a level of confidence that retail traders have yet to fully reflect in the market price.
Furthermore, the derivatives market presents an explosive setup, with over $520 million in leverage oriented toward short positions. Due to this bias, even a moderate upward move could force these positions to close, acting as the catalyst to reach the projected target.
In summary, the success of this move depends on maintaining support at $1.84 to avoid invalidating the technical pattern. Investors are closely watching to see if institutional buying pressure will be sufficient to break through the $2.24 resistance and kick off the expected rally.
