The Ripple price staged a strong rally on Tuesday, crossing a crucial resistance level as whale accumulation accelerated and Bitcoin soared past $90,000.
The rally was also fueled by regulatory optimism after Paul Atkins took over as the new SEC chairman.
Ripple (XRP) token jumped to a high of $2.17 on Tuesday, up by 35% from its lowest level this month.
The rally coincided with the ongoing recovery in the crypto market. Bitcoin (BTC) surged to above $91,000, while other blue-chip coins like Ethereum (ETH), Dogecoin (DOGE), and Sui (SUI) jumped by over 5%. The market cap of all cryptocurrencies jumped by 3% to $2.85 trillion.
XRP’s price also increased as whales continued accumulating. Santiment data shows that the number of XRP holders with between 10 million and 100 million tokens rose from a low of 291 this month to 311.
Similarly, the number of holders with over 1 billion tokens increased from 158 earlier this month to 169. Those holding between 1 million and 10 million tokens rose to 2,148. Whale accumulation is seen as a bullish signal, as these investors are typically more sophisticated.
Additional data shows that the volume of XRP tokens on exchanges continues to fall, indicating that investors are not selling their holdings. These balances have dropped from over $3.28 billion in November last year to $2.7 billion today.
XRP investors have cheered numerous catalysts recently. Paul Atkins was sworn in as the head of the Securities and Exchange Commission on Monday. Polymarket investors expect him to approve XRP ETFs from eleven companies, including VanEck, ProShares, and Franklin Templeton.
Ripple Labs recently acquired Hidden Road, a prime broker in a $1.25 billion deal. The company aims to integrate its $10 billion in daily transactions into the XRP Ledger.
Ripple continues to position itself as a major player in financial services, aiming to compete with SWIFT. Following the conclusion of the SEC vs. Ripple case, the company hopes to secure additional partnerships with banks and money transfer providers.
XRP price technical analysis: towards a 60% jump?
The daily chart shows that XRP has rebounded after reaching a low of $1.6112 on April 7. It has since bounced 35% from its lowest point this year.
It has now moved above the 25-day moving average, a sign that bullish momentum is building. The price has also broken above the descending trendline that connects the highest swing points since January 16. This line also marks the upper boundary of a falling wedge pattern.
The Relative Strength Index has crossed above the neutral level at 50. As a result, the token may continue to rise, with bulls targeting the year-to-date high of $3.40, approximately 60% above the current level. This bullish view will be confirmed if the price moves above resistance at $2.7045, the 23.6% Fibonacci retracement level.