- October has historically been volatile for XRP, with both notable gains and sharp losses..
- Market Analyst highlights that crypto whales have bought around 250 million XRP in the last two weeks.
- A pennant pattern formation in daily charts shows a mid-term trend for the XRP price is bullish.
XRP, the native token of the XRP Ledger, jumped over 3.57% on Wednesday, October 1st. Along with “Uptober” sentiment in the market, the buying pressure rose as investors sought digital assets as a safe haven amid the U.S. government shutdown. The latest on-chain data also highlights renewed interest in Ripple crypto among large investors, as the XRP price rebounds within a traditional bullish pattern.
$250M Whale Purchases Signal Potential Upside for XRP Amid Volatility
October has been a rollercoaster month for XRP, with significant gains and sharp decreases. Significant profits include +16.9% in 2021, +16.5% in 2023, and +15.1% in 2019, which indicates that the token can reap bullish October sentiment if market conditions are favorable. At the same time, October has also suffered from massive losses, including -16.7% in 2024, -22.9% in 2018, and -15.1% in 2015, highlighting its volatility.
XRP has averaged -3.96 returns in October, with a median of -0.62%. This has shown that while October can sometimes bring some impressive rallies, it has generally been a rather tepid or negative month for XRP.
This data showcases XRP’s penchant for unpredictable results during this time frame, heavily influenced by extrinsic catalysts such as regulatory news, market-wide risk sentiment, and liquidity flows. While October has been a pivot point for some years, this year has served as a reminder of caution when it comes to year-end rallies.
While retailers may be scared of this choppy behavior, whales are showing renewed confidence in XRP. As indicated by market analyst Ali Martinez in a recent tweet, whales bought $250 million in XRP in just 48 hours.
This increase in large-scale purchases is occurring against the continued backdrop of market volatility, which is indicative of strong conviction in the hands of institutional or high-net-worth investors. This whale activity is likely to provide XRP with a price boost, which could mitigate the bearish trends observed in the month.
XRP Price Set Bullish Breakout From Flag
Since launch, the XRP price has soared from $2.61 to the current trading price of $2.94, accounting for 9% growth. This upstream gained its initial push from the broader market recovery and extended forward amid increasing whale accumulation.
Interestingly, the XRP price found its support at the multi-month support trendline of a bullish pennant pattern. The chart setup is characterized by a long ascending trend line reflecting the dominant trend in price, followed by a short-run consolidation between converging trendlines to recuperate the exhausted bullish momentum.
The pennant pattern is commonly spotted in an established trend, bolstering buyers to regain momentum.
With today’s jump, the XRP price managed to reclaim the key daily exponential moving averages of 20 and 50, accentuating the bullish shift in market price. If the bullish momentum persists, the coin price is less than 2% short of challenging the pattern’s resistance at $3.00.
A potential breakout will accelerate the bullish momentum and signal the end of the current correction in price. The post-breakout could push for a $3.60 swing.
That said, if the sellers continue to defend the pennant pattern resistance, the price could drive a prolonged correction in late October.
