XRP price to $5 next? 3 Charts suggest the historic rally is far from over.

XRP (XRP) price has dropped significantly over the past seven days, hitting a low of $2.16 on December 5.

Despite the possibility of a pullback, there are three data points that support XRP's upside, including whale stocks, increasing network activity, and a strong market setup.

Whale stocks support XRP up

In response to the market correction last week, XRP whales took advantage of the drop to $2.16 and bought more tokens in the dips.

According to data from Sentiment, tokens stored on whale addresses holding between 1 million and 10 million XRP increased significantly between December 3rd and December 8th.

These big investors accumulated about 120 million XRP during the same period, which is worth about 288 million dollars.

This move highlights the confidence these investors have in the future prospects of a higher XRP price during the current correction.

A detailed look at the recent movements of XRP tokens reveals a high concentration among large investors. This is due to increasing withdrawals from Binance and other centralized exchanges (CEXs), according to data from Whale Alert.

This includes a whale transfer of 21.7 million XRP tokens from the Binance crypto exchange to an unknown wallet worth $56.7 million. This transfer may be part of the investor's desire to keep their tokens in self-contained wallets in anticipation of price increases.

The timing of these high XRP exchanges is noteworthy as it coincides with a significant shift in the distribution of XRP holdings.

In particular, there has been a significant decrease in the supply of XRP on exchanges, as evidenced by data from CryptoQuant. As the chart below shows, the XRP exchange dropped by 10% when the price dropped to $2.16 on December 8.

This shows that whales are not willing to sell, which strengthens XRP's potential.

The adoption of the XRP Ledger is increasing to increase the value of XRP.

Active addresses on the XRP Ledger (XRPL) hit a 33-month high following the cryptocurrency's sharp price increase over the past 30 days.

Active addresses of XRPL were less than 20,000 on November 1. This metric increased over 440% to 108,771 addresses on December 3, with ratings last seen on February 20, 2020.

The number of transactions also increased by 190% from 1.4 million to 3.9 million during the same period.

Transaction count and active addresses are widely used to estimate the number of users connecting to a network. As a key indicator of blockchain adoption and interaction with the underlying token, they provide valuable insights into the network's overall activity and user engagement.

A significant increase in these onchain indicators could boost the price of XRP, leading to speculation that the token could reach an all-time high in the near future.

Related: Why Is XRP Price Rising Today?

XRP price is “very powerful chart”.

Veteran trader Peter Brandt shared a chart showing a major crash in XRP's market capitalization.

In what he called “the most powerful chart” in the crypto space, Brandt targeted XRP's market cap at $146 billion, an all-time high, and an asymmetric triangle on the weekly time frame. Note that this is higher than the all-time high market cap of $128 billion for the 2021 cycle.

XRP rose to $2.90 on December 3, down 38% from its high of $3.84 on January 4, 2018. Brandt's analysis has fueled discussions about the price continuing its rally to new all-time highs.

Crypto analysts remain optimistic about XRP's upside potential, setting some double-digit targets for the price.

$XRP is up 90+% against $ETH since I said 2 weeks ago that $ETH and $BTC could start some big performance.

The analyst suggested that XRP could rise by 30% in a short period of time, regaining the key range and surpassing $3.00 for the first time in more than six years.

“At the current price of $ETH ($4000), this puts $XRP over $5.”

Meanwhile, fellow analyst Steph I shared an article showing that crypto XRP has broken out of a bullish “W” pattern with a target above $35.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.