XRP has seen an extraordinary rally, with its price surging 380% in the past 23 days. Reaching a peak of $2.87 on December 2, the recent surge is largely attributed to aggressive buying by whales, particularly on Coinbase, according to CryptoQuant CEO Ki Young Ju.
Whale Activity and Coinbase Premium
Ju observed significant price premiums on Coinbase during the rally, ranging from 3% to 13%, indicating robust demand from U.S.-based investors. By contrast, Upbit, a Korean exchange with a substantial XRP user base, showed no significant premium, underscoring that the buying pressure originates primarily from the U.S.
Ju speculated on potential insider activity, suggesting that the whales might be reacting to impending bullish news, such as a spot ETF approval for XRP. He also warned against shorting XRP during this period, citing potential risks tied to high demand and market dynamics.
XRP Retail Activity Hits Record Levels
Retail interest has surged as well, with trading frequency for XRP exceeding 2021 highs and nearing levels last seen in January 2018, when XRP reached its all-time high of $3.92.
- The 1-year cumulative volume delta (CVD) shows that taker buy orders are dominating sell orders, further highlighting the intense buying activity.
- Ju noted that whales are heavily leveraging market orders, driving significant demand.
Technical Analysis: A Path to a 700% Rally Against BTC?
From a technical standpoint, crypto analyst Jacob Canfield highlighted the importance of the XRP/BTC pairing:
- XRP recently tested a critical resistance zone on the BTC pair chart while hitting the $2.75 resistance on the USDT chart—levels not seen since December 2019.
- A breakout could signal a potential 240% move back to historical resistance zones from 2017, 2018, and 2019.
Canfield also speculated on the possibility of a 700% surge against BTC in case of extreme FOMO and sustained bullish momentum.
Strategy for Traders
For shorter timeframes, Canfield emphasized the use of support and resistance levels:
- He pointed to $2.20 as a key support level for XRP/USD, ideal for identifying re-entry points.
- Low time-frame (e.g., 5-min or 15-min) analysis is particularly useful in the current bull market environment.
