XRP has faced a major decline in recent days, shedding more than 23% of its value since Tuesday. This steep correction has mirrored the general market turmoil, intensifying negative sentiment around XRP. However, certain developments are emerging beneath the surface of this bearish price action.
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Key chain data from Santiment indicates that whales are exploiting the pit. In the last 24 hours alone, these large holders have accumulated an additional 110 million XRP, showing great confidence in the asset's long-term prospects. Historically, whale activity in a negative mood often indicates a strategic position for future gains.
This rallying trend indicates that whales are not deterred by short-term price fluctuations, focusing instead on XRP's potential in the coming months. As retail traders become increasingly cautious amid the recent downturn, the actions of these big bookmakers paint a different picture.
While the outlook is immediate for XRP still uncertain, the activity of the famous whales is a positive sign for the long term. Whether this marks a bottom or just sets XRP up for a broader recovery remains to be seen, but it's clear that big players are looking beyond the current market turmoil.
XRP maintains major levels
XRP is currently trading 28% below its multi-year high of $2.90, but has been able to stay above a critical support level at $1.90. This range, considered the bulls' last line of defense, has been resilient amid recent market volatility. Holding above this level is essential to maintain the supportive structure that has characterized XRP's recent price action.
Adding to the optimism, key metrics from Santiment, shared by crypto analyst Ali Martinezrevealed that XRP whales have actively rallied during the pullback. Over the past 24 hours, these large holders have purchased an additional 110 million XRP, demonstrating their confidence in the asset's long-term potential. Historically, bearish activity during price declines often signals preparation for a recovery.
The next step for XRP to move back is to push above the critical supply levels that had stopped previous uptrends. A break above these zones could trigger a rapid rally, bringing XRP closer to its multi-year high.
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The strong support at $1.90 and continued bullish rally suggest a positive outlook for the coming weeks. However, it will be essential for XRP to maintain the current levels and overcome resistance to take advantage of this potential and restore its bullish trajectory.
Technical Levels to Watch
XRP is trading at $2.06, showing a loss of momentum after failing to retrace the crucial $2.60 level. This inability to push higher has left the market uncertain, with XRP holding above the critical $1.90 low. For now, these levels suggest that the fund could enter a long period of range-bound trading, oscillating between $1.90 and $2.60 in the coming days.
However, the market sentiment is still uncertain, and this uncertainty could turn towards the bearish side if the overall sentiment does not improve. With XRP trading just above the psychologically important $2 mark, a sustained lack of momentum could lead to a massive selloff. If bears take control, the lack of strong support below $2 could pave the way for a deeper correction, eroding recent gains.
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For XRP to be free from this uncertain level, a clear appeal of the $2.60 level is needed to restore confidence among bulls. Until then, traders and investors are likely to remain cautious, closely monitoring price movements and sentiment movements to gauge the next direction move. In the absence of a definite break, the price may be under significant pressure, risking a more pronounced decline if support at $1.90 fails.
Featured image from Dall-E, chart from TradingView
