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XRP has faced a sharp correction over the past few days, falling more than 23% since Tuesday amid heightened market volatility. Despite this sharp decline, XRP has shown resilience, bouncing back with a notable 20% recovery since yesterday. This rapid recovery has reignited discussions about XRP’s long-term prospects, even as short-term sentiment remains fragile.
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According to data shared by prominent cryptocurrency analyst Ali Martinez, whales have accumulated 80 million XRP since the correction began on December 17. This increase in whale activity indicates growing confidence among large investors, who appear to be seizing the opportunity to buy XRP at a lower price. Prices. This accumulation often indicates a long-term bullish outlook, even when the broader market is going through periods of uncertainty.
While the XRP rebound is encouraging, it comes amid a backdrop of negative sentiment and price instability. The coming days are likely to be crucial in determining whether XRP is able to maintain its bullish momentum or whether further consolidation is on the horizon. For now, whale activity offers a glimmer of optimism, indicating continued interest in the asset despite recent setbacks.
XRP whales are being loaded
XRP is currently trading 22% below its multi-year high of $2.90, following a period of extreme market volatility. Despite the recent turmoil, XRP has held steady above the low of $1.90, a crucial support level that serves as the last line of defense for the bulls. Maintaining this level is essential to maintain the broader bullish structure and prevent a deeper correction.
Latest data from SantimentThe spotlight, shared by cryptocurrency analyst Ali Martinez, highlights an important development: whales have bought 80 million XRP since the correction began on December 17.
This accumulation by major investors indicates growing confidence in XRP’s long-term potential despite the short-term price decline. Historically, whale activity has often been preceded by large price movements, as these investors typically have access to better market insights.
If XRP can maintain its position above $2 and start pushing through vital supply zones, a quick recovery could follow. Overcoming these resistance levels will likely pave the way for renewed bullish momentum, with the potential for a retest of multi-year highs.
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While challenges remain, such as prevailing market uncertainty and cautious sentiment, the combination of strong support and significant whale accumulation provides an optimistic outlook for XRP in the coming weeks. Maintaining current levels could indicate the beginning of a new upward trajectory.
Test liquidity above $2
XRP is trading at $2.35, marking a strong rebound from its recent drop to $1.95. This bounce confirms the resilience of XRP price movement, as it continues to hold above key support levels. The low of $1.95 has proven to be a pivot point for the bulls, and maintaining this momentum could point to further gains in the coming days.
However, for the rally to gain credibility, XRP must reclaim the $2.60 mark. This level acts as a critical resistance point and confirmation zone for bullish sentiment. A break above $2.60 would likely attract more buying interest, pushing XRP towards a retest of multi-year highs.
On the other hand, losing the $2 support level would change the narrative. Such a move would expose XRP to further downside risks, which could lead to a deeper correction. Market sentiment remains cautious, and a break below $2 could accelerate selling pressure.
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Right now, XRP’s outlook depends on its ability to move between these crucial levels. The bulls will need to push the price above $2.60 to validate the rally, while the bears will aim to pull it below $2 to take control. The next few sessions will be crucial in determining XRP’s short-term trend.
Featured image by Dall-E, chart from TradingView