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XRP has faced a sharp pullback over the past few days, losing more than 23% of its value since Tuesday. This sharp correction reflects broader market turmoil, which has intensified negative sentiment around XRP. However, there are notable developments emerging beneath the surface of this bearish price action.
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Key on-chain data from Santiment reveals that whales are benefiting from the decline. In just the last 24 hours, these top holders have raised an additional 110 million XRP, demonstrating great confidence in the asset’s long-term prospects. Historically, whale activity during negative emotions often indicates strategic positioning for future gain.
This cumulative trend suggests that short-term price fluctuations are not deterring whales, and are instead focusing on XRP’s potential in the coming months. As retail traders grow more cautious amid the recent decline, the actions of these large shareholders highlight a different perspective.
While the immediate outlook for XRP remains uncertain, observed whale activity is a bullish indicator in the long term. Whether this signals a bottom or simply positions XRP for a broader recovery remains to be seen, but it is clear that the big players are looking beyond the current market turmoil.
XRP holds key levels
XRP is currently trading 28% below its multi-year high of $2.90, but has managed to stay above the critical support level at $1.90. This area, considered the last line of defense for bulls, has proven resilient amid recent market volatility. Staying above this level is essential to maintain the bullish structure that has characterized XRP’s recent price action.
Adding to the optimism, key metrics from Santiment, Shared by cryptocurrency analyst Ali MartinezIt reveals that whales actively accumulated XRP during the pullback. Over the past 24 hours, these large holders have purchased an additional 110 million XRP, underscoring their confidence in the asset’s long-term potential. Historically, whale activity during low prices often indicates readiness for a recovery.
The next step to regaining XRP’s momentum is to cross the critical supply levels that previously halted the upward moves. A breakout above these areas could lead to a rapid rally, taking XRP closer to its highest level in several years.
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Strong support at $1.90 and continued whale accumulation indicate a positive outlook for the coming weeks. However, maintaining current levels and overcoming resistance will be crucial for XRP to capitalize on this potential and reignite its upward trajectory.
Technical levels of viewing
XRP is trading at $2.06, reflecting a loss of momentum after failing to reclaim the crucial $2.60 level. The inability to rally has left the market uncertain, with XRP holding above a critical low of $1.90. Currently, these levels indicate that the asset may enter an extended period of range trading, oscillating between $1.90 and $2.60 in the coming days.
However, market sentiment remains fragile, and this hesitation may lean towards the downside if the overall mood does not improve. With XRP trading just above the psychologically important $2 level, a continued lack of upward momentum could lead to a significant sell-off. If the bears take control, the lack of strong support below $2 could set the stage for a deeper correction, eroding recent gains.
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For XRP to break out of this indecisive phase, a clear recovery to the $2.60 level is essential to restore confidence among the bulls. Until then, traders and investors will likely exercise caution, closely monitoring price movements and sentiment shifts to gauge the next directional move. Without a decisive breakout, the price may face increasing pressure, and risks a more pronounced pullback if the support at $1.90 fails.
Featured image by Dall-E, chart from TradingView