TL;DR

Some analysts believe XRP can soon climb to uncharted territory with the recent whale accumulation supporting the bullish case. However, XRP exchange balances continue to rise, signaling possible sell pressure.

Is It Time for the Bears to Step Back?

Ripples cross-border token has retraced by over 5% in the last seven days, currently trading at around $2.85 (per CoinGeckos data). Moreover, this valuation represents a solid 22% decline compared to the all-time high of around $3.65 registered in mid-July.

Despite the downtrend, multiple market observers remain optimistic on XRP. Crypto Tony (who has over 540,000 followers on X) claimed the bulls might get back in play if the token closes the week above $2.90. 

The analyst with the moniker Hardy suggested XRP looks primed for a move. They touched upon the assets performance since July to predict a breakout to the upside of this falling pattern.

Shibo and FOUR | Crypto Spaces also chipped in. The former expects a great storm this year that will make XRP experience a parabolic rally. The latter claimed the assets price action confirms a healthy, impulsive move, targeting potential resistance level at $5.06. 

CRYPTOWZRD gave their take, too, recently, outlining similarities between XRPs recent consolidation and the one observed in 2017, which was followed by a massive bull run:

XRP is following the 2017 Bull Run Structure.. after this consolidation phase we will see a parabolic rally to $4.50 and higher. Patience Pays.

Examining These Factors

Towards the end of last month, the popular X user Ali Martinez revealed that large investors (known as whales) have shown renewed interest in XRP, purchasing 340 million tokens (worth just below $1 billion) in the span of two weeks. 

Accumulations of that type are considered bullish for the price since they reduce the amount of coins on the open market. They may also encourage smaller players to hop on the bandwagon.

Shortly after, Martinez weighed in again, presenting a possible path for XRP for the near future. In his view, the three stages include defending $2.70, breaking above $2.90, and then targeting a new peak of $3.70.

It is important to note that some indicators signal a bearish perspective, and the increasing amount of XRP tokens stored on leading crypto exchanges is among the examples. The stash held on Binance, for instance, has surged to a new all-time high of over 3.55 billion coins. The switch from self-custody toward centralized exchanges is often viewed as a pre-sale step, which could spell trouble for the bulls.

XRP Reserves on Binance, Source: CryptoQuant