While the recent market crash prompted many investors to exit the XRP market, on-chain data reveals that whales seized the opportunity to increase their XRP holdings.

Whale accumulating XRP and Bull flag formation are two factors that can take XRP to $4.

Based on data from Santiment, XRP whales holding between 1 million and 10 million XRP acquired an additional 100 million XRP tokens between December 7 and 10. During this period, the price of XRP dropped by 27.2%, from $2.61 to $1.90.

These whales’ holdings did not decrease during XRP’s downturn. Instead, their cumulative balance rose from approximately 4.71 billion XRP tokens to around 4.80 billion as they deployed an additional $200 million in capital.

XRP Whales Bought 1.1B XRP in 30 Days

This latest accumulation is in line with a consistent trend over the past 30 days, during which these whales have continued consolidating their holdings. In mid-November, their collective holdings stood at 3.71 billion XRP. 

With the current level at 4.8 billion tokens, they have added approximately 1.1 billion XRP to their portfolio within a month. During this period, the asset’s price has risen from around $0.50 to $2.87.

Interestingly, when XRP first reached its seven-year high of $2.87 in the first week of December, these whales took some profit, as illustrated by the slight dip in their holdings. However, they have since used the price dip to buy more XRP at lower prices.

Their savvy move is already paying off gradually, as XRP has risen to $2.43 since the Tuesday crash.

XRP Bull Flag

While market participants expect an uptrend continuation to much higher levels, technical indicators suggest that XRP’s recent comeback may be on hold for a while, with signals pointing to a potential another bearish market.

In a tweet, Ali Martinez highlighted that while XRP’s price patterns continue to form a bull flag, the TD Sequential indicator has presented a sell signal on XRP’s four-hour chart. Based on this, he emphasized that XRP could face another correction before the much-anticipated breakout beyond the $2 price range.

Martinez believes the run toward $4 will begin after the anticipated brief pullback. He first pointed out the potential for a $4 price run on Monday during the dip, noting that the asset was forming a fourth bullish pennant.

Previous instances saw XRP rise from $0.69 to $1.10, followed by a correction and then a resumption to $1.50. The cool-off from this movement eventually propelled XRP to $2.87.

With the current pullback, the next resumption is expected to push XRP to $4.40, according to Ali Martinez.

Notably, as of press time, XRP has already dipped by 4%, touching lows of $2.30 after reaching $2.46 yesterday.

XRP fair market value exceeds the $122,000 price mark, according to an assessment from the Collateralization model from Valhil Capital.

XRP has been one of the top performers over the past six weeks, having recently reclaimed and retained the $2 level. Despite this, some commentaries suggest the altcoin still trades below its fair market value due to several factors contributing to price suppression.

The Collateralization Model

Notably, last year, venture capital firm Valhil Capital compiled several models seeking to assess XRP’s fair market value under certain conditions. Interestingly, a bold valuation model, the Collateralization Model, suggests that XRP could has a fair market value of $122,580.

This evaluation sees a future where global financial systems are tokenized, and XRP becomes the foundation for collateralizing assets worldwide. Developed by Valhil Capital, the model examines the total global wealth and tokenization’s impact on XRP’s role as a store of value.

Interestingly, the Collateralization Model assumes that all global assets, including real estate, derivatives, central bank reserves, and commodities, are tokenized on the XRPL, the underlying blockchain for XRP. The Ripple CTO David Schwartz already confirmed that the XRPL is pivoting to RWA tokenization.

This ambitious scenario sees a future where blockchain technology represents the full spectrum of global wealth. Notably, the goal is to determine XRP’s value as a universal collateral asset in a highly interconnected, tokenized financial system.

Further, the methodology stresses XRP’s ability to secure assets rather than drive transactions. The model’s assumptions include full tokenization of global wealth and the use of XRP to collateralize this value.

XRP Fair Market Value at $122,580

The evaluation considers the world’s total wealth, which is estimated at $5.3 quadrillion. When it applies a 1.25x risk adjustment ratio and calculates the present value of tokenized assets, the model estimates a total tokenized economy of $6.2 quadrillion by 2030.

Notably, dividing this value by XRP’s circulating supply of 50.7 billion tokens results in the projected value of $122,580 per token.

The Collateralization Model puts an emphasis on XRP’s potential in the tokenization scene. However, challenges remain. Tokenizing all assets globally would face technological and regulatory setbacks. Moreover, unknown values not in the analysis could affect the accuracy of this valuation.

Despite these challenges, the model notes the possibility of a blockchain-based future where XRP’s value syncs with its utility. Currently, XRP changes hands at $2.4, trading far below this fair market estimate. However, this is not a price prediction but rather an analysis of XRP’s theoretical fair value under ideal conditions.

A notable market analyst discusses his ultimate XRP investment strategy amid the ongoing bull run, identifying an attractive profit range.

XRP has experienced a tremendous rally since the U.S. presidential election on Nov. 5, which saw Donald Trump emerge victorious. In November, XRP surged by an impressive 283%, followed by an additional 26% increase in December, as it holds above $2.

XRP Profit-Taking Targets

This sustained bullish momentum has triggered optimism among investors, most of whom are seeking effective strategies for maximizing profits during this market cycle.

Renowned analyst EGRAG has revealed an XRP investment strategy, highlighting a profit-taking range of $4.4 to $27. He based his approach on Fibonacci retracement levels, which analysts often use to identify potential price movements.

EGRAG’s profit-taking targets include $4.42 (Fibonacci 1.414), $6.56 (Fibonacci 1.618), $8.39 (Fibonacci 1.272), $13.73 (Fibonacci 1.414), and $27.86 (Fibonacci 1.618). He explained that these price points critical for investors aiming to secure profits as XRP continues its upward trajectory.

XRP Investment Strategies for Short-Term Holders

To provide guidance, EGRAG outlined several profit-taking strategies tailored to both new and experienced investors.

Notably, for those looking to take a systematic approach, he recommends percentage-based selling. In this approach investors can sell a fixed portion of holdings—such as 25%—at each target price, while they hold the remainder for potential future gains.

Another option involves incremental selling. This would see investors sell smaller amounts, such as 5%, each time XRP’s price increases by a set figure, like $0.50.

However, some investors may prioritize recovering their initial capital before implementing other strategies. This allows them to minimize risk while potentially maximizing long-term profits.

Alternatively, some may prefer to sell their entire holdings upon reaching a personal price target. For context, this will ensure that they observe a definitive exit point.

XRP Investment Strategy for Long-Term Holders

Notably, for those willing to take on higher risk, EGRAG suggested they reinvest profits into low- or mid-cap projects with high growth potential. While this can yield exponential returns, it requires a deep understanding of the market.

On the other hand, long-term holders might choose to forgo short-term selling altogether, instead opting to accumulate XRP for 10–15 years. This strategy appeals to those with a long-term vision and less immediate need for liquidity.

Another approach is on building generational wealth by retaining a significant portion of XRP holdings to pass down to future generations. This method aligns with investors looking to secure a legacy for their family.

EGRAG encouraged investors to develop custom strategies tailored to their individual goals and to share these approaches within the community. His own strategy is from his unique financial background and family priorities.

After spending two decades in investment sales and resigning from his role in early 2024, he now combines various methods to balance profit-taking with future growth potential.

He plans to recover his initial capital through percentage-based selling while gradually releasing 10% of his holdings at specific price milestones. Once XRP reaches the $27 to $33 range, he intends to hold a “moon bag” for further appreciation.

Industry commentators believe XRP is all set for a breakout after nearly two weeks of consolidation but is awaiting major news to trigger the shift.

Vincent Van Code, a widely followed software engineer, shares this sentiment. In a tweet, Van Code pointed out that XRP is forming an ascending triangle on the daily chart. He noted that in the absence of significant news, the price may follow technical analysis patterns.

According to him, this typically happens when the market is awaiting news, causing it to trade sideways. While he acknowledged that daily price swings of 10 to 20% are common, he emphasized that the key move will come with a breakout above $2.90.

Yet, he stressed that this breakout will likely occur once major news is announced. “Let’s wait and see,” he said.

Imminent News to Trigger XRP

Notably, the XRP Army eagerly awaits at least three key developments, which they believe will ignite a new spark for XRP. Among them is the upcoming launch of Ripple’s stablecoin, RLUSD.

Earlier this week, Ripple secured approval from the New York Department of Financial Services (NYDFS) to list RLUSD. Ripple CEO Brad Garlinghouse stated that RLUSD will soon launch on partner exchanges.

Other pro-XRP news in the works includes ETF approvals and the settlement of Ripple’s ongoing lawsuit. However, these events will unfold in 2025.

Meanwhile, the launch of RLUSD is imminent. With the news expected in the coming days, XRP proponents believe it could be the catalyst for XRP’s new bull run. At press time, XRP is trading at $2.51, up by 7.11% over the past 24 hours.

XRP Targets After Breakout

Van Code believes XRP’s breakout rally will gain significant momentum once the asset surpasses $2.90. At the same time, other market commentators have set ambitious targets for XRP enthusiasts to look forward to when the bull run resumes.

Technical analyst Arjantit, in a tweet, noted that XRP is displaying a bullish flag pattern on the 8-hour chart, signaling the potential for a breakout. According to him, a break above the flag could push the price towards $2.91 and $3.20. He advised market participants to watch for confirmation of this setup.

In a separate post, analyst “FinanceBro” expressed a similar view, stating that XRP’s bull flag is “officially complete.” In his view, the breakout rally will likely drive the price to $4.40. 

Meanwhile, he further suggested that $4.40 could merely mark the beginning of an even larger rally to the upside.