Elliott Wave Expert Says “Only Bullish Scenarios Remain” After Accumulation Phase ⋆ ZyCrypto

XRP traded rather weakly on Thursday, holding just above $2.10, even after gaining roughly 13% over the past week.

Following an extended period of crypto market quiet, the crypto-asset is emerging as a key focus for investors, with analysts now pointing to a potential major recovery ahead due to various bullish signals.

Notably, data from blockchain analytics firm Santiment highlights that whale wallets holding between 10 and 10,000 XRP have quietly accumulated roughly 26% of the total circulating supply since mid-December.

“The key stakeholders are finally accumulating again, and they now hold the highest proportion of XRP since early November.” The analysts noted in a recent analysis.

This level of accumulation is being interpreted as a strong sign of confidence among institutional and high-net-worth investors, often referred to as whales.

Santiment further noted that long-term holders are still largely in the red, with average losses around 2.55% as of New Year’s Eve. Notably, this dynamic, in which whales buy heavily while retail traders remain cautious, can often precede significant price appreciation.

“Historically, periods when large stakeholders increase their holdings while smaller traders remain hesitant can set the stage for a bullish move,” they added.

This surge in whale activity is reinforced by data that shows a sharp increase in large XRP Ledger transactions valued at $100,000 or more. The network recorded 2,170 such transfers on Monday, before activity jumped to 2,802 by the following day, marking a three-month high.

Retail sentiment, in contrast, remains largely neutral. Unlike previous rallies where retail fear-of-missing-out drove sharp short-term spikes, XRP’s current momentum appears measured and steady. Analysts see this as a positive factor, as it reduces the likelihood of sudden, unsustainable surges driven by hype.

“While retail traders are still actively purchasing dips, the market’s current steadiness suggests a healthier environment for long-term growth,” one analyst explained.

Technical indicators also appear supportive. On the weekly chart, the Relative Strength Index (RSI) has recently broken above its moving average, signaling a potential shift in momentum, as noted by crypto analyst Steph Is Crypto.

“The weekly RSI has broken back above its moving average. This is important because it usually only happens when momentum starts to shift decisively in favor of buyers.” He tweeted on Thursday. 

“Since 2024, every previous RSI break above its moving average on the weekly timeframe led to strong upside and follow-through in price over the weeks that followed.”

Elliott Wave analyst XForceGlobal, a popular Elliott Wave Theory expert, also expressed bullish expectations, citing pattern recognition and market psychology. 

“Here’s PROOF that XRP can easily go to $5 this cycle (and even up to $20+) using pattern recognition from the Elliott Wave Theory,” he said. “Most of the bearish ideas have been invalidated, and we are left with only two options: a bullish scenario and a very bullish scenario.” 

According to him, XRP’s current setup has created a new price floor following previous market consolidations, and a flat pattern is forming, which, once resolved, could propel the token significantly higher.

“The macro is still trading within a tight range that hasn’t been done in the history of XRP’s price action and has created a new price floor that is now, in my opinion, in the validation stage before further upside based on pattern recognition.” He added.

At press time, XRP was trading at $2.128, down 2.31% in the past 24 hours.