On January 11th, the crypto market bounced as stronger-than-expected U.S. non-farm payroll data and a declining unemployment rate bolstered investors’ sentiment. With a 3% surge, the Bitcoin price leads a relief rally in most major altcoins, including the Ripple cryptocurrency. The XRP price currently resonating with the pennant pattern shows potential for imminent breakout amid whale accumulation and open interest’s spike.
As of now, the XRP price trades at $2.35 with an intraday gain of 3.64%. According to Coingecko, the asset’s market cap is at $135 Billion, while the 24-hour trading volume is at $5.07 Billion.
Key Highlights:
- The formation of a bullish pennant pattern drives the current consolidation trend in XRP price.
- The Ripple crypto is less than 2% short from a bullish breakout of the pennant pattern
- The Fibonacci retracement tool indicates $2 and $1.7 as key pullback support at their confidence with 38.2% and 50% FIB levels.
Whale Activity and Rising Open Interest Indicate Impending XRP Rally
In a recent tweet, renowned crypto analyst Ali Martinez highlighted that crypto whales have reportedly purchased approximately 1 billion XRP tokens within the past 48 hours. This large-scale accumulation signals whale confidence in the asset’s potential growth despite the current market correction.
Historically, such whale activity is often followed by a major market reversal or key breakout for higher rallies.
According to CoinGlass data, the XRP’s futures open interest has witnessed a notable spike from $1.9-to-$4.4 Billion, accounting for a 131.5% gain. This significant increase in open interest implies heightened trader activity and growing confidence in XRP’s future price movement.
The active whale accumulation and heightened activity in the derivative market suggest an impending move in XRP price.
XRP Price Shows Imminent Breakout from Pennant Pattern
Over the past six weeks, the XRP price has showcased a sideways trend resonating within the formation of a pennant pattern. The coin price rebounded multiple times from the converging trendlines, indicating the pattern’s reliability and influence of potential move.
Theoretically, this consolidation offers a temporary pause in ongoing buyers to regain the bullish momentum. The Ripple crypto is now less than 2% short from a bullish breakout of the overhead trendline.
If the buyers flip this resistance into potential support, the XRP price could rise 103% to hit $4.8 high.
On the contrary, if market uncertainty prevents the anticipated breakout, the altcoin will prolong this consolidation for the coming weeks.
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