XRP has recently shown renewed vigor after a period of decline, quickly gaining traction among major cryptocurrencies. Here are some key points:

• Whale addresses for XRP reached a record-breaking 317,500, indicating significant accumulation.
• The price of XRP needs to overcome a resistance level at $2.59 for a potential surge toward $3.

XRP bounced back from a Friday low of $2.18, achieving an increase of up to 13% to reach an intraday high of $2.48 on Monday. This positive momentum, combined with whale activity, suggests that the XRP/USD pair is on the verge of a possible upward trend towards $3 in the upcoming days.

What Is Driving XRP’s Recovery?

XRP whales seem optimistic about future rally prospects, using recent price dips to accumulate more tokens. According to Santiment, the metric detailing whale counts shows that the number of wallets holding at least 10,000 XRP has notably increased to around 317,500.

“XRP’s price has rebounded back a modest +5.3%,” Santiment stated in a post on X.
“XRP的价格已经回升了5.3%” - Santiment在X上的一则帖子中表示。

Their market intelligence firm noted that the rise in mid to large holders is a positive long-term indicator. They added:

“XRP now has over 317.4K wallets holding at least 10K coins for the first time in history.”
“XRP现在有超过317.4K个钱包持有至少10K枚硬币，这是历史上的第一次。”

This uptick aligns with a significant decrease in XRP supply on centralized exchanges over the last month, as reported by Glassnode. The data indicates a drop in the amount of XRP on exchanges from 6.12% down to 3.9% between September 19 and now.

A diminishing balance on exchanges implies reduced supply available for immediate sales, strengthening XRP’s upside potential.

“The majority of XRP on exchanges is already gone,” noted crypto investor Black Swan Capitalist in a Sunday post on X.
“交易所上的大部分XRP已经消失了” - 加密投资者Black Swan Capitalist在周日的X上发帖说道。

Given the limited liquidity remaining, any considerable demand could rapidly deplete the remaining supply, creating ideal conditions for a major trend reversal.

XRP Price Needs to Reclaim the 200-Day SMA

The price activity of XRP appears to be following a possible V-shaped recovery trend on the daily chart since mid-September. A V-shaped recovery represents a bullish signal formed when an asset witnesses a steep increase in price following a sharp decline, culminating when it reaches the resistance at the top of the formation.

XRP is currently on a similar path, yet bulls need to overcome the $2.59 hurdle, where the 200-day simple moving average (SMA) rests, to validate a full recovery.

A challenging resistance zone exists between $2.81 and $2.95, bridged by the 50-day and 100-day SMAs. If surpassed, the next significant target would be the neckline at $3.40, implying a 26% increase from the current price.

XRP analyst Egrag Crypto emphasized critical levels to watch, asserting that a close above $2.55 to $2.65 on the 3-day timeframe would signal strong bullish momentum.

Meanwhile, Bollinger Band width has tightened significantly since June, suggesting a possible major price shift may be coming. Historically, when the bands were this constricted, XRP experienced a rebound of 66% from a previous multi-year high of $3.66, rising from $2.20.

As reported earlier, Ripple is aiming to establish a $1 billion Digital Asset Treasury company.