thecryptobasic.com
Economist and trader Mikybull recently shared a chart on X with the caption, “$XRP is dead.”
While the statement may sound bearish, Mikybull used the phrase to highlight a recurring market pattern where skepticism peaks just before a strong recovery.
$XRP Repeating Descending Channel
The chart shows $XRP moving within a downward-sloping channel, drawn with red trend lines. At the same time, a long-term moving average (blue curve) continues to rise. This mirrors a phase seen in mid-2024, when $XRP faced similar doubts.
Breakout History Offers a Clue
In that previous run, the prolonged pullback gave way to a sudden rally that surprised many traders who had written the asset off.
Mikybull’s latest observation suggests that $XRP may be setting up for a similar move. The pattern of a falling channel alongside a rising moving average has historically marked the end of a consolidation phase, rather than the beginning of a prolonged downturn.
Essentially, while short-term price action looks weak and may continue to test support levels, the underlying upward slope of the moving average points to a still-intact long-term trend.
For traders watching $XRP around $2.80, the current “dead” phase means the early stages of another significant breakout, especially as the market enters the final quarter of the year, a historically bullish season.
Interestingly, while $XRP’s price is in a quiet phase, deep-pocketed investors are silently accumulating ahead of the next major pump.
Whales Already Positioning for $XRP’s Next Major Move
In a tweet today, analyst Ali Martinez revealed that whales have bought 120 million $XRP over the past three days, investing over $300 million in the $XRP market. Notably, these are investors holding between 10 million and 100 million $XRP tokens each.
Their collective balance was under 7.8 billion $XRP last week. However, as of today, their total has reached 7.91 billion. The last time they held this much $XRP was in mid-August.
At that time, their holdings even reached 8 billion, but they gradually sold off their positions, which explains $XRP’s price decline earlier this month. Now, they have resumed buying, positioning for the next rebound.
More Bullish Factor
The market is also widely anticipating the SEC’s decision on $XRP ETFs in October. Proponents believe that approval could open the floodgates for capital inflows, pushing prices much higher.
Essentially, $XRP’s next rebound is backed by a strong technical setup, major whale accumulation, and solid fundamentals—factors that some believe could help the coin reach $10 by the end of the year.