Is XRP Preparing for a Rally? Whales Quietly Buy the Dip

XRPXRP-5.38% Feels Market Pressure but Big Buyers Step In

The cryptocurrency market has taken a breather recently, dragging many top tokens down with it. XRP hasn't escaped the pressure, dropping about 5.4% over the past 24 hours and around 4.9% over the last week to trade near $1.24.

Past performance of digital assets is not a guarantee of future results. You can track real-time asset movements on Bitkub Market.

Even with prices slipping, something interesting is happening beneath the surface. Deep-pocketed crypto investors, often called whales, appear to be taking advantage of lower prices to accumulate more tokens.

What On-Chain Data Reveals About Whale Activity

Crypto analyst Ali Martinez recently highlighted two key signals from Santiment data. Both point toward growing confidence among major holders.

First, around 13.24 million XRP tokens were moved off exchange wallets in a single brief window near 01:00 UTC. When investors pull tokens off exchanges into private cold storage, it usually means they plan to hold for the longer term rather than sell immediately. This action shrinks the immediate supply available on public markets.

Second, the largest XRP wallet addresses added approximately 60 million XRP over the past week. While it is unclear if the exchange withdrawals and whale buys involve the exact same accounts, both trends show that major players are steadily building their positions.

The Inverse Head-and-Shoulders Pattern: A Potential Reversal?

On the daily price chart, Martinez noted that XRP may be forming the right shoulder of an inverse head-and-shoulders pattern. Technical analysts often view this classic setup as a sign that an ongoing downtrend might be coming to an end.

Here is how this technical setup breaks down under market analysis:

• Key Neckline: The $1.60 level acts as the major technical hurdle.
• Pattern Confirmation: A decisive break above $1.60 would be needed to confirm the reversal pattern.
• Upside Target with Assumptions: If trading momentum builds and market conditions remain favorable, a confirmed breakout above $1.60 could project a target near $2.10.
• Downside Risk: If buying pressure fails to push past resistance or broader market selling resumes, the pattern could invalidate, causing prices to slide back toward lower support levels.

"The chart will decide whether it becomes a breakout," Martinez noted, emphasizing that chart setups require clear market confirmation.

Short-Term Chart Structure Needs Further Proof

Looking closer at short-term price action, XRP recently bounced off the $1.21 zone. This area aligns with the 61.8% Fibonacci retracement level—a popular mathematical tool traders use to spot potential support during market pullbacks.

While this bounce helped XRP break out of a short downward channel, analysts urge caution. The recovery so far has unfolded in a three-leg structure. In technical analysis, three-leg moves can sometimes turn out to be temporary relief rallies rather than sustainable trend flips.

To confirm that a solid price bottom is established, XRP needs to achieve a few key technical milestones:

1. Hold a higher low comfortably above recent support level.
2. Break cleanly above the previous swing high near $1.34.
3. Complete a robust five-leg upward move followed by a shallow, controlled pullback.

Key XRP Price Levels to Watch Right Now

Whether you are tracking short-term moves or watching the broader trend, here are the critical price zones currently on traders' radars:

• Immediate Support ($1.24): The current testing ground and recent swing low.
• Key Support ($1.21): The 61.8% Fibonacci level holding the recent bounce together.
• Deeper Support ($1.10): A potential landing zone if $1.21 fails to hold during a deeper correction.
• First Resistance ($1.34): The local swing high XRP must beat to show short-term strength.
• Pattern Neckline ($1.60): The critical breakout line for the inverse head-and-shoulders setup.
• Potential Breakout Target ($2.10): The projected technical target if a sustained breakout occurs under supportive market conditions.

The Takeaway: Balancing On-Chain Signals and Market Risks

Right now, XRP presents a classic tug-of-war. On one hand, on-chain data shows quiet accumulation from large holders taking coins off exchanges. On the other hand, price action remains constrained by overall market trends.

Holding the support zone between $1.21 and $1.24 will be crucial over the coming days. A move above $1.34 would provide the first sign that buyers are reclaiming short-term momentum. However, readers should remember that crypto assets remain volatile, and market conditions can change rapidly.