XRP (XRP) price prediction: Bitcoin whales accumulate BTC, setting the stage for a potential breakout past $4.00

The digital asset has seen a significant rebound from its recent lows, with analysts predicting a potential breakout past $4.00 in the coming months. This bullish

Digital asset prices have been recovering rapidly from their recent lows, with analysts now predicting a potential breakout past $4.12 for XRP in the coming months. This bullish outlook comes as Bitcoin whales continue accumulating large amounts of BTC, signaling increased confidence in the broader cryptocurrency sector.

After a recent dip to $1.79, the digital asset has seen a significant rebound, currently trading at around $2.47, marking a 38% recovery from its March lows. The recent price surge follows two major developments: Ripple’s successful resolution of its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC) and the company’s push to secure a financial license in Dubai. Both events have contributed to renewed optimism surrounding the asset.

Chart analysis suggests that the Ripple currency price is approaching key resistance levels. Crypto analyst Dom highlighted that XRP must hold above $2.50 to sustain its momentum. “The chart still looks very constructive,” Dom noted in a recent post on X, adding that maintaining this level could be a strong sign for buyers.

A potential bullish breakout of the upper trendline could propel the XRP price surge past $4. Source: Massguy66 on TradingView

Furthermore, the Relative Strength Index (RSI) sits above 60, indicating strong buying pressure while remaining below the overbought threshold. Another bullish signal comes from the formation of a symmetrical triangle pattern on longer timeframes - a pattern that historically precedes significant upward movements.

If XRP successfully breaks above the upper trendline, analysts suggest it could surge to $4.12 by May. Additionally, data from Binance’s liquidation heatmap indicates that crucial resistance points exist at $2.66 and $2.98. If XRP surpasses these levels, a wave of liquidations could further propel the price upward.

Heating up: Crucial resistance points for XRP on Binance’s liquidation heatmap. Source: Binance

The cryptocurrency market has seen a shift in favor of Bitcoin, with major institutions showing interest in the asset class. MicroStrategy has been particularly active, and its latest move saw it add 6,911 BTC to its holdings at a cost of roughly $584.1 million.

This brings MicroStrategy’s total Bitcoin stash to over 500,000 BTC, highlighting the institutional confidence in the cryptocurrency. The massive accumulation is expected to have a trickling effect on the broader crypto market, potentially boosting the prices of other assets like XRP.

As the market continues to recover and Bitcoin whales display unwavering faith in the cryptocurrency sector, the stage is set for a potential breakout of XRP past the $4 mark. However, traders should keep a close eye on external factors and technical indicators to guide their trading decisions in this volatile market.