Ripple (XRP) has outperformed Bitcoin (BTC) and most altcoins in the last 5 months after a staggering 414% gain. Its market capitalization has also ballooned from $28 billion to $181 billion, to rank as the third-largest cryptocurrency.
XRP’s rally started after the November 5 elections, which paved the way for friendly crypto policies under the Trump administration. Amid these gains, on-chain analytics platform Alphractal believes that XRP could continue the uptrend and potentially hit $10.
More bullish signs for XRP emerge
At press time, XRP traded at $3.06 after dropping slightly by 5% in 24 hours. According to Alphractal, this altcoin could make a similar rally as the one witnessed in 2017, and surpass $10.
One of the indicators that supports this bullish outlook is the SMA Multiplier. XRP is testing resistance at the two-year SMA multiplier, and if it flips this level, it could set the stage for a 5-times gain as previously witnessed in 2017.
(Source: Alphractal)The analysis further stated that in the last four years, XRP has recorded more green candles than red candles. This suggests a steady accumulation by traders and a surge in global liquidity, which could support a long-term uptrend.
Wallet Profitability Rises – Bullish or Bearish?
Following the recent gains, the number of XRP wallets that are in profit has increased significantly. Per Alphractal, more than 5,200 addresses currently hold more than $1M worth of XRP, while over 860 addresses hold more than $10M tokens.
These whale addresses are at their highest level in history, with their holdings surging significantly in value. The positive sentiment driven by rising wallet profitability has helped to support XRP’s rally.
Additionally, short-term holders have been accumulating XRP at a high rate. Historically, short-term holders tend to drive price gains due to a rapid surge in buying activity.
While trader behavior supports a bullish thesis for XRP, other on-chain metrics suggest that the market could get overheated, resulting in a near-term correction.
The Net Unrealized Profit/Loss (NUPL) ratio has surged to 0.63, showing that XRP is in a high profit zone. This suggests that the altcoin is transitioning between the Belief and Denial zones, with a surge past 0.7 set to signal a market top.
(Source: Alphractal)The behavior of long-term holders also shows that they are taking profits by selling into the rally. However, XRP has sustained the uptrend despite the long-term holder selloff, suggesting that there is ample demand to absorb the sell-side pressure. This could support further gains.
Source: https://zycrypto.com/ripples-xrp-path-to-10-mapped-out-as-414-rally-and-record-whale-holdings-signal-surprising-upside/
