The Ripple (XRP) price experienced a significant rally on Tuesday, breaking through a critical resistance level amid increased whale accumulation and a surge in Bitcoin’s value beyond $90,000. This upward movement was further supported by regulatory optimism following Paul Atkins’ appointment as the new Chairman of the Securities and Exchange Commission (SEC).

XRP Price Surge and Market Recovery

On Tuesday, Ripple’s XRP token surged by 35%, reaching a high of $2.17, marking a notable recovery from its lowest level earlier this month. This rally coincided with the broader recovery in the cryptocurrency market. Bitcoin’s (BTC) price climbed above $91,000, while other leading cryptocurrencies like Ethereum (ETH), Dogecoin (DOGE), and Sui (SUI) saw gains of over 5%. The overall market capitalization of cryptocurrencies increased by 3%, reaching $2.85 trillion.

Whale Accumulation Fuels Optimism

One of the driving forces behind XRP’s rally is the continued accumulation by whales, which is often seen as a bullish signal. Recent data shows notable increases in large XRP holders:

  • The number of holders with between 10 million and 100 million tokens rose from 291 to 311 within the month.
  • Investors holding more than 1 billion tokens increased from 158 to 169.
  • Those holding between 1 million and 10 million tokens grew to 2,148.

Additionally, on-chain data reveals that the volume of XRP tokens stored on exchanges is steadily decreasing. Balances have dropped from $3.28 billion in November last year to $2.7 billion today, suggesting that investors are choosing to hold rather than sell their XRP.

Regulatory Developments and Institutional Interest

XRP investors have been buoyed by positive regulatory developments. On Monday, Paul Atkins officially became the Chairman of the SEC, and market speculation points to the potential approval of XRP ETFs from major asset management firms. These companies include ProShares, Franklin Templeton, and VanEck, signaling increasing institutional interest.

“The XRP era is on the horizon. Eleven asset managers, with over $240 billion in assets under management, are now competing to launch XRP ETFs. Institutional adoption is becoming a reality.”

Ripple Labs has also made strategic moves to strengthen its position in the financial services sector. The company recently completed the acquisition of Hidden Road, a prime brokerage firm, for $1.25 billion. This acquisition aims to integrate Hidden Road’s $10 billion daily transactions into the XRP Ledger, further solidifying Ripple’s role in global finance.

Ripple’s Position in Financial Services

Ripple is working to establish itself as a key player in financial services, aiming to compete with SWIFT. Following the conclusion of the SEC vs. Ripple case, the company plans to expand partnerships with banks and money transfer providers. These efforts align with Ripple’s ambition to drive adoption of XRP as a tool for cross-border payments and liquidity.

XRP Price Technical Analysis

Technical analysis of XRP suggests that the token may be poised for further gains. The daily chart highlights that XRP has rebounded significantly after hitting a low of $1.6112 on April 7. Since then, the price has climbed by 35%, breaking above the 25-day moving average—a clear indicator of growing bullish momentum.

The price has also surpassed a descending trendline that connects the highest swing points since January 16, forming the upper boundary of a falling wedge pattern. This breakout is a strong bullish signal. The Relative Strength Index (RSI) has crossed above the neutral level of 50, reinforcing the potential for continued upward movement.

If the bullish momentum persists, XRP could target its year-to-date high of $3.40, representing a potential 60% increase from its current level. However, for this scenario to materialize, the price must first break above the resistance at $2.7045, which aligns with the 23.6% Fibonacci retracement level.

Final Thoughts

With growing whale accumulation, positive regulatory developments, and strong technical indicators, XRP appears positioned for further gains. As the cryptocurrency market continues to recover, Ripple’s strategic moves and increasing institutional interest in XRP may drive its adoption and price growth in the coming months.

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