XRP has faced a steep correction in recent days, falling more than 23% since Tuesday amid increased market volatility. Despite this sharp decline, XRP has shown resilience, bouncing back with a notable recovery of 20% since yesterday. This quick rebound has sparked discussions about XRP's long-term prospects, even as short-term sentiment remains dovish.
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According to data shared by prominent crypto analyst Ali Martinez, whales have collected 80 million XRP since the correction began on December 17. prices. Such a rally often signals a supportive long-term outlook, even as the broader market goes through periods of uncertainty.
Although the recovery of XRP is encouragingit comes amid a backdrop of negative sentiment and price volatility. The coming days are likely to be crucial in determining whether XRP can maintain its upward momentum or if further consolidation is to come. For now, whaling activity offers a glimmer of hope, reflecting continued interest in the asset despite recent setbacks.
XRP whales uploading
XRP is currently trading 22% below its multi-year high of $2.90, following a period of heightened market stability. Despite the recent turmoil, XRP has maintained its base above the $1.90 low – a critical support level that is the bulls' last line of defense. It is necessary to hold this level to preserve the broader bullish structure and prevent a deeper correction.
Recent data from Santimentshared by crypto analyst Ali Martinez, reveals an important development: whales have bought 80 million XRP since the correction began on December 17.
This rally by large investors shows growing confidence in XRP's long-term potential despite short-term price declines. Historically, bullish activity has often preceded significant price movements, as these investors typically have access to better market insights.
If XRP can maintain its position above $2 and start pushing through critical supply zones, a rapid recovery could follow. Overcoming these resistance levels would likely pave the way for renewed momentum, with the potential to reconfirm multi-year highs.
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While there are still challenges, such as the current market uncertainty and cautious sentiment, the combination of strong support and a large rally of whales offers an optimistic outlook for XRP in the coming weeks. Holding current levels could signal the start of a new uptrend.
Testing liquidity above $2
XRP is trading at $2.35, marking a strong recovery from its recent drop to $1.95. This rebound indicates the stability of XRP's price action, as it is holding above key support levels. The $1.95 low has been a key area for bulls, and sustaining this trend could signal more gains in the coming days.
However, for the rally to gain credibility, XRP needs to regain the $2.60 mark. This level is a critical protection point and a proving ground for bullish sentiment. A break above $2.60 would likely generate more buying interest, leading XRP to reconfirm multi-year highs.
On the flip side, a loss of the $2 support level would move the statement. Such a move would bring XRP to lower risks, which could lead to a deeper correction. Market sentiment remains cautious, and a break below $2 could lead to more immediate selling pressure.
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For now, XRP's outlook rests on its ability to move between these critical levels. Bulls need to push the price above $2.60 to confirm the rally, while bears aim to drag it below $2 to seize control. The next few sessions will be crucial in defining XRP's short-term trend.
Featured image from Dall-E, chart from TradingView
