Market data reveals substantial whale activity during a recent price adjustment. On December 7, wallets holding between 1 million and 10 million XRP acquired approximately 120 million tokens, valued at $288 million. This accumulation occurred as the price temporarily declined from $2.90 to $2.22 between December 3-6.
Trading volume metrics show mixed signals, with daily trading volume currently at $12.03 billion, representing a 13.70% decrease. However, market analysts note this reduction in volume during price consolidation is not unusual for the asset.
Technical analysis of XRP’s price movement indicates $2.30 has emerged as a crucial support level since December 2. This price point has proven resilient, with buyers consistently defending this zone during recent market fluctuations.
On-chain metrics paint an encouraging picture for XRP‘s ecosystem growth. The XRP Ledger has reached a notable milestone, with active addresses surpassing 100,000 on December 2, marking a yearly high. This increase in network activity suggests growing adoption and usage of the platform.
The surge in on-chain activity represents a shift from previous patterns. According to CryptoQuant analyst Wenry, while exchange transfers dominated transaction volume until Q3 2024, on-chain XRP transactions have now taken the lead.
Infrastructure developments on the XRP Ledger have contributed to increased network activity. The platform has seen improvements in its DeFi capabilities, creating an environment that attracts decentralized protocols similar to established players in the space.
Layer 2 solution development has also progressed, with projects like The Root Network, XRPL Ethereum Virtual Machine, and XRPL Hooks working to enhance scalability and functionality. These technical improvements aim to expand the network’s capabilities and user base.
Market analysts have identified potential price targets based on current market structure. Technical indicators suggest the possibility of movement toward the $3.00 level, with some pointing to the 2021 cycle top of $3.30 as a longer-term target.
The Relative Strength Index (RSI) on the 4-hour chart remains above the neutral 50 mark, suggesting sustained buying pressure. However, the Chaikin Money Flow (CMF) indicator shows neutral capital flows, indicating a balanced market in the short term.
Liquidation data from Coinglass reveals concentrated positions above $2.60, where leveraged short positions have accumulated. Additional liquidity levels exist at $2.45 and $2.38, which could influence short-term price movement.
Current market positioning shows XRP trading at $2.57, representing a 3.94% increase over the past 24 hours. The total market capitalization stands at $147.98 billion, cementing its position as the third-largest cryptocurrency.
Weekly chart analysis shows strong price momentum with buyers maintaining control according to the Directional Movement Index (DMI). This technical structure supports the possibility of continued upward movement, provided key support levels hold.
Recent blockchain data indicates exchange transfers no longer dominate transaction volume, suggesting increased utility and adoption of the XRP network beyond trading activities.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
