XRP whales load up ahead of Spark airdrop

XRP holders are agitated beyond common sense as the overhyped SPARK token airdrop is less than a day away.  

Flare Networks, a blockchain project that introduces smart contract functionality on XRP ledger, will take a snapshot of the network on December 12 (00:00 GMT) and distribute SPARK tokens to all XRP holders on a one-to-one ratio. 

Holders move XRPs to the exchanges

However, to qualify for the airdrop, XRP owners must transfer their coins to the cryptocurrency exchanges and wallets supporting the event. Currently, over 50 trading platforms, including Binance, Coinbase, Kraken, Poloniex and OKEx confirmed the participation in the airdrop. 

According to XPRL data, over $1.2 billion XRP tokens have been transferred to the cryptocurrency exchange accounts in the past days, meaning that the community is getting ready for the airdrop. 

Moreover, the number of whale accounts holding over 10 million tokens (about $5.5 million at press time) increased by 10% in the past three weeks and reached an all-time high of 339, according to the on-chain research and analytical data provider Santiment. 

XRP stuck in a triangle

Notably, the network activity has not resulted in a price pump as of yet. From the technical point of view, XRP is still moving within the symmetrical triangle pattern. At the time of writing, the token is changing hands at $0.55, while the growth attempts are limited by the sloping trend line that connects the lower highs from November 24. 

This barrier is also reinforced by 4-hour 50 and 100 EMAs, meaning that the bulls might have a hard time pushing the price above this hurdle. Only a sustainable move higher will take the recovery back on track with the next focus on $0.8.

XRP 4-hour chart

Notably, the symmetrical triangle pattern usually denotes a high level of uncertainty on the market. Also, it is a precursor of a volatility spike as the break-out direction will define a new trend of an asset price. 

On the downside, the critical support comes at $0.5. Once it is broken, the sell-off will be extended with the local support created by 4-hour 200 EMA at $4.6 and the estimated triangle breakdown target at $0.31