As anticipation builds for a bullish breakout in the crypto market in the fourth quarter, XRP, backed by Ripple Labs, has shown signs of breaking out of its macro consolidation phase early. This large-cap altcoin, utilized by Ripple for cross-border payments, is gaining attention from both speculative investors and institutional traders looking to diversify into the cryptocurrency space.
Over its ten years of existence, the XRP market has matured significantly, boasting deep liquidity from various centralized and decentralized exchanges.
XRP Price Poised for Takeoff
With a fully diluted valuation of approximately $64 billion and a daily average trading volume of about $3 billion, XRP closed above the 200 Moving Average (MA) last week for the first time since April, indicating a potential bullish breakout. From a technical perspective, XRP has broken out of a long-term downward trend and a six-year triangular consolidation pattern.
Closing above 64 cents last week positions XRP for a potential rally towards the next psychological target of $1. However, a drop below the $0.58 support/resistance level could push the price lower, potentially leading to a retest of the multi-year low against BTC.
Whales Continuing to Accumulate
Recent on-chain data from Santiment shows that crypto whales have accumulated over 470 million XRP, valued at around $300 million, in the last ten days. Notably, over $56 million worth of XRP has been withdrawn from the Upbit exchange in the past 24 hours.
This surge in whale accumulation could further fuel bullish sentiment in the fourth quarter, which is anticipated to be positive.
Factors Driving Bullish Sentiment
XRP is now free from regulatory constraints, and Ripple has ramped up development on XRPL to meet the demands of Web3. Additionally, the crypto market is mirroring a bullish breakout similar to that seen in Gold, ahead of the upcoming U.S. 2024 general election and amidst changing economic conditions.
Ripple’s recent foray into the stablecoin market has accelerated the minting of RLUSD on XRPL, increasing overall on-chain activity.
