XRP Whales Loading Up – Data Reveals Buying Activity
XRP has faced steep declines over the past few days, losing more than 23% in value since Tuesday. This sharp correction reflects the turmoil in the broader market and adds to the negative sentiment surrounding XRP. However, beneath this bearish price action, significant developments are emerging.
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Santiment’s critical on-chain data shows whales are taking advantage of the dip. In the past 24 hours alone, these large holders have accumulated an additional 110 million XRP, demonstrating confidence in the asset’s long-term prospects. Historically, whale activity during periods of negative sentiment has often signaled strategic positioning for future gains.
This accumulation trend shows that whales are not intimidated by short-term price fluctuations and are focused on XRP’s potential in the coming months. The actions of these large shareholders underscore the differing views as retail traders have grown increasingly cautious amid the recent decline.
While XRP’s near-term prospects While uncertainty remains, noteworthy whale activity is a bullish indicator in the long term. Whether this signals a bottom for XRP or simply sets the stage for a broader recovery remains to be seen, but it’s clear that 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 it has managed to stay above the key support level at $1.90. This area is considered the bulls’ last line of defense and has proven resilient during recent market volatility. Staying above this level is crucial to maintaining the bullish structure of XRP’s recent price action.
Santiment’s key metrics add to optimism, Cryptocurrency analyst Ali Martinez sharesrevealing that XRP whales were actively accumulating during the pullback. These large holders purchased an additional 110 million XRP in the past 24 hours, underscoring their confidence in the asset’s long-term potential. Historically, whale activity during price declines has typically signaled preparations for a recovery.
The next step for XRP to regain momentum is to push it above key supply levels that have previously hindered gains. A breakout of these areas could trigger a swift rally that brings XRP closer to its multi-year highs.
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Strong support at $1.90 and continued whale accumulation point to a positive outlook for the coming weeks. However, sustaining current levels and overcoming resistance is crucial for XRP to fully capitalize on this potential and reignite its bullish trajectory.
Technical level worthy of attention
XRP is trading at $2.06, reflecting a loss of momentum after failing to regain the key $2.60 level. This inability to push higher has created uncertainty in the market, with XRP holding above the key lows of $1.90. Currently, these levels suggest that the asset may enter a long-term range trade, trading between $1.90 and $2.60 in the coming days.
However, market sentiment remains fragile and this indecision may tip the scales bearishly if overall sentiment does not improve. With XRP trading just above the psychologically important $2 mark, a continued lack of bullish momentum could lead to a sharp sell-off. If bears take over, the lack of strong support below $2 could pave the way for a further pullback, eroding recent gains.
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For XRP to escape this indecision phase, it must clearly regain the $2.60 levels to restore bulls’ confidence. Until then, traders and investors are likely to remain cautious, paying close attention to price movements and changes in sentiment to gauge where to go next. Without a decisive breakout, the price is likely to come under increasing pressure, with the potential for a more significant decline if support at $1.90 fails.
Featured image from Dall-E, chart from TradingView
