Easing Middle East Tensions and Whale Buying Fuel XRP’s Sharp Price Rebound

The recent ceasefire agreement between Israel and Iran has significantly eased geopolitical tensions that had previously rattled global markets. This development restored investor confidence, particularly in risk-sensitive assets like cryptocurrencies.

XRP’s price responded sharply, climbing over 11% within 24 hours as traders rotated back into digital assets amid the improved outlook. The truce, confirmed by Israeli Prime Minister Benjamin Netanyahu and Iranian officials, ended a period of heightened uncertainty triggered by U.S. military actions, which had caused XRP and other cryptocurrencies to plunge.

Whale Accumulation Provides Strong Market Support

Data from blockchain analytics firm Glassnode reveals that mid-sized whale addresses holding between 10,000 and 100,000 XRP have steadily increased their holdings since late 2024. Despite recent geopolitical instability, these investors have quietly accumulated XRP, signaling strong confidence in its long-term potential.

This steady accumulation by whales has likely cushioned XRP’s price during volatile periods, enabling a faster recovery as broader market sentiment improved.

Did you know?
Mid-sized whale addresses holding 10,000 to 100,000 XRP control over 7.34 billion XRP, a significant portion of the circulating supply, highlighting their influential role in price dynamics.

Technical Rebound from Key Support Zones

XRP’s price rebound was catalyzed by a bounce off a critical support confluence near $1.82 to $1.92. This zone aligns with the 50-week exponential moving average and the lower trendline of a descending triangle pattern that has shaped XRP’s price action.

Historically, this support area triggered a substantial 65% rally earlier in the year, underscoring its importance. The current rebound raises the probability of a breakout toward XRP’s yearly high of $3.36, representing a potential 55% upside.

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Risks from Bearish Technical Patterns Remain

While the recent price action is promising, analysts caution that the descending triangle pattern XRP is navigating is traditionally bearish when formed during an uptrend. A decisive break below the lower trendline could push XRP down toward $1.10, negating the current bullish momentum.

Therefore, traders are closely monitoring whether XRP can sustain above this support and break through the upper trendline to confirm a bullish reversal.

Broader Market Dynamics Favor Risk Assets

XRP’s surge aligns with a broader risk-on sentiment in global markets as geopolitical risks subside. Cryptocurrencies, stocks, and other high-beta assets have benefited from renewed investor appetite, reflecting optimism for stability and growth.

This environment creates favorable conditions for XRP and other digital assets to regain lost ground and potentially reach new highs.