Silent XRP accumulation is building pressure for the Bitcoin breakout

XRP has moved little more than a few cents away from an average of 25 cents in months, while the Bitcoin trading pair has continued to decline in value.

But while altcoins are bleeding out against BTC, ripple whales continue to pile up and soaking up the supply could soon lead to a huge outbreak against Bitcoin.

XRP versus BTC: Bollinger Bands squeeze into hidden bullish divergence

It is hard to imagine that any asset of any kind is bullish when it is currently falling, marking new downtrend lows. But sometimes more happens behind the scenes, which builds up the pressure for a massive move and behavior change.

Ripple has now spent nearly three full years lowering its ratio compared to BTC. Since mid-2019, XRP has done very little, trading mostly sideways as it continues to grind deeper.

Related reading | XRP triggers a signal that results in an average increase of nearly 80% versus Bitcoin

The long span of consolidation has caused the Bollinger Bands to squeeze into the second strongest point in the trading pair’s history over the two-week timeframe.

History doesn’t always repeat itself, but it often rhymes. And if a hidden bull div in the Relative Strength Index is any indication of it in the same timeframe as the last time the Bollinger Bands pulled so tightly, an explosive reversal on Bitcoin is near.

The last time, after a second rejection by the middle BB, the third time was the charm and Ripple took off, rising over 2,000% against BTC.

Squeezing the Bollinger Bands, preparing for a big step. Hidden Bull Div at RSI points up | Source: XRPBTC on TradingView.com

Whales that accumulate ripple resemble bitcoin metrics before the breakout

While not exactly the same scenario, the silent accumulation of XRP whales corresponds to the same behavior as Bitcoin prior to its most recent outbreak.

The whale-sized BTC wallets kept rising until there was no longer enough supply, and Bitcoin recently had a major bullish breakout.

Related reading | Underdog Story: Why Ripple Could Outperform Bitcoin and Ethereum Soon

Now it could be Ripple’s turn. According to data, XRP wallets of 1 million or more have grown by 20%, while wallets of 10 million or more have grown by 10%.

When these whales finally decide they’ve absorbed enough supply, prices will rise quickly as investors try to catch the breakout. When XRP finally breaks out, its moves are significant and the above signs are all that can be counted on, there could be an overperformance against Bitcoin soon.

Featured image from deposit photos, charts from TradingView.com

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