XRP Targets $3.84 as On-Chain Metrics Points to Market Confidence

An unknown entity just transferred nearly 40 million XRP tokens (worth $103.18 million). X user Whale Alert said the XRP went to a wallet linked to Coinbase.

A mysterious entity has just transferred nearly 40 million XRP tokens (worth $103.18 million), sparking speculation about its likely impact on XRP's trajectory. According to crypto tracking platform Whale Alert, the XRP was moved to a wallet linked to Coinbase.

This unexpected move comes at a crucial time, as XRP has shed over 4% in the past 24 hours, slipping into the $2.61 range. Notably, many traders view this price zone as a golden opportunity to “buy the dip.” Could this massive XRP transfer be signaling an impending rally?

CoinGlass data reveals that XRP's on-chain metrics seem to be pointing toward bullish momentum. The OI-Weighted Funding Rate chart shows a gradual rise, reaching 0.06% on November 13. At the time, XRP was trading at $0.43. By December 3, the rate was 0.046%, with XRP at $2.53.

This trend indicates that long position holders are keen on maintaining their bullish stance, suggesting growing market confidence and a positive outlook. Furthermore, derivatives trading volume surged to $78.85 billion as XRP rose to $2.73.

This surge reflects heightened investor interest, likely fueled by whale activity and market buzz. Moreover, the Long/Short (24h) ratio of 0.9767 indicates that long positions currently dominate the market, reinforcing the sentiment of a possible rally.

At press time, XRP faces resistance at the 78.6% Fibonacci retracement level, a zone often associated with possible market pullbacks. However, a decisive daily close above this mark could propel the cryptocurrency toward its all-time high of $3.84, situated a mere 27.02% away from its current price.

The DMI indicator also aligns with this bullish narrative, with the +DI (57.7344) significantly higher than the -DI (5.2130), indicating strong bullish dominance. The ADX reading (45.5937) further highlights the trend's strength and momentum.

Meanwhile, the RSI, currently at 82.05, suggests heightened bullish conditions, although it also indicates that the price may be entering overbought territory. This duality suggests that while the bulls maintain control, the possibility of a short-term correction cannot be overlooked.

Should a retracement occur, XRP could revisit the 2021 resistance-turned-support at $1.96, a level that may provide a safety net before the next upward surge.

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