XRP is showing strong signs of recovery and upward momentum, sparking renewed optimism among traders and analysts. The token recently climbed above the $3 mark and continues to attract significant whale accumulation, a key indicator of bullish sentiment.

Whale Activity Suggests Confidence

Despite a recent sell-off triggered by Ripple co-founder Chris Larsen’s 50 billion XRP sale, the price of XRP remained resilient. It rose by 2% on Monday, reflecting a shift in sentiment and renewed buying pressure. Notably, entities holding between 10 million and 100 million XRP have increased their holdings to 8.31 billion tokens, representing 14% of the total circulating supply.

This accumulation during price dips suggests confidence among large holders, who appear unfazed by recent volatility. Analysts interpret this behaviour as a sign that whales are helping establish a price floor, which could encourage retail investors to enter or hold positions.

Strong Network Growth and Market Performance

In addition to whale activity, on-chain data reflects a surge in interest around the XRP Ledger. The network has seen a consistent increase in new wallet creation, peaking at around 11,000 new addresses on 18 July. Over the past month, the network has averaged approximately 7,500 new wallets daily.

XRP has also outperformed Bitcoin in recent weeks, gaining over 30% against the leading cryptocurrency. This performance adds further weight to the growing optimism surrounding XRP’s market outlook.

Key Levels to Watch Before a $4 Breakout

While bullish momentum builds, analysts caution that XRP must hold several important support levels to continue its ascent. The token recently bounced from a key demand zone above $3, particularly around the $2.95 mark, which aligns with the monthly volume-weighted average price (VWAP) and rolling VWAP.

Prominent trader Dom noted that the pullback to $2.95 led to a 30% wipeout in open interest, signalling a major reset. He highlighted $2.80 as the lowest level XRP can afford to reach without risking a breakdown in market structure.

Analyst CasiTrades added that XRP’s critical support remains at $3. He stated that a breakout above $3.30, where the 50-period simple moving average (SMA) lies, could lead to a swift move toward new highs. According to his analysis, the first major target is $3.82, based on the 2.618 Fibonacci extension.

Analysts Predict a $4 Target and Beyond

Multiple market observers now believe XRP is in a prime position to hit $4 in the near future. Pseudonymous trader XForceGlobal described the current cycle as “the most profitable phase” of XRP’s Elliott Wave pattern, indicating that a sharp move upward is likely.

Veteran trader Peter Brandt added technical weight to the bullish outlook, suggesting that XRP has formed a rare “continuation compound fulcrum” pattern. If this plays out, Brandt believes XRP could rally as high as $4.47.

Overall, the combination of whale accumulation, strong technical indicators, and positive network growth is reinforcing analyst predictions that XRP may soon test and surpass its previous highs.