The biggest XRP whales are taking action – Will the price react?

XRP price has recovered from its recent Dip , rising nearly 4% from yesterday's lows and stabilizing after a minor correction. While the overall trend remains cautious, a new indicator suggests the downward momentum may be weakening.

Recently, the XRP issuer has moved closer to becoming a licensed bank, so attention is focused on whether large investors will continue to participate and confirm a clear trend shift.

A bullish divergence forms when the biggest sharks start buying.

On the daily chart, XRP price showed a bullish divergence between December 1st, 2023 and December 12th, 2023. During this period, the price formed new Dip , while the Relative Strength Index (RSI) formed higher Dip . The RSI measures momentum, and this pattern often appears when selling pressure begins to weaken before the price rebounds.

Want more Token analysis like this? Sign up for editor Harsh Notariya's daily Crypto newsletter here .

This pattern helped the price rebound, but what makes it even more interesting is how the whales are acting. The two largest groups of XRP holder have started to react noticeably.

Wallets holding more than 1 billion XRP increased their XRP holdings from 25.36 billion on December 9, 2023, to 25.42 billion. Simultaneously, wallets holding between 100 million and 1 billion XRP stopped selling and started buying, raising their total holdings from 8.08 billion on December 11, 2023, to 8.15 billion XRP at the time of writing.

In total, these two groups have purchased approximately 130 million XRP. At current prices, this is equivalent to a net accumulation of about $265 million USD. This shows that large holder are not only observing the divergence signal but are also actively buying based on this signal.

This timing is also crucial. Ripple has just moved closer to obtaining a banking license in the US , reinforcing its long-term narrative regarding financial institutions. This positive regulatory development further increases whale interest in the current price.

XRP price levels will determine whether the trend reversal holds.

For this bullish divergence to continue to be effective, XRP price needs to maintain its upward momentum . The key level ahead is $2.11. If the daily candle closes above this level, XRP will record a gain of approximately 3.72% from its current price and confirm that buyers have regained short-term control. XRP has not maintained above $2.11 since the beginning of December 2023.

If this level is breached, the next resistance will be $2.21. Only if the price remains above $2.21 will a bullish structure truly form, opening up opportunities to move towards price levels such as $2.58 or even higher.

Conversely, the risk zone has been clearly identified. If the XRP price falls below $1.96 accompanied by a weakening RSI, the bullish divergence signal will no longer hold true. The price could then retreat to $1.88, or even $1.81 if selling pressure continues to intensify.

Currently, the trend is quite positive but not yet complete. Momentum indicators have improved, and whales have also reacted. For this reversal to truly take effect, large holder need to continue maintaining their buying power instead of just reacting in the short term.