XRP Holds Key Demand Level – Whale Activity Suggests Strength
XRP has faced a sharp correction over the past few days, plunging more than 23% since Tuesday amid heightened market volatility. Despite the sharp decline, XRP has shown resilience, having rebounded a significant 20% since yesterday. While short-term sentiment remains volatile, this rapid rally has reignited discussions about XRP’s long-term prospects.
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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. The surge in whale activity indicates the growing confidence of large investors, who appear to be seizing the opportunity to buy XRP prices at lower prices. Even though the broader market is going through uncertain times, this accumulation often signals a bullish outlook for the long term.
While XRP’s recovery is encouragingthis comes against a backdrop of negative sentiment and price instability. The next few days may be crucial in determining whether XRP can maintain its upward momentum or if further consolidation is imminent. For now, whale activity is providing a glimmer of optimism, hinting at continued interest in the asset despite recent setbacks.
XRP whale is loading
After a period of heightened market volatility, XRP is currently trading 22% below its multi-year high of $2.90. Despite the recent turbulence, XRP remains above the $1.90 lows – a key support level that is the bulls’ last line of defense. Holding this level is critical to sustaining the broader bullish structure and preventing a deeper correction.
Latest data from SantimentThe article shared by cryptocurrency analyst Ali Martinez highlights a significant development: whales have purchased 80 million XRP since the correction began on December 17.
Despite the short-term price decline, the accumulation of holdings by large investors demonstrates growing confidence in XRP’s long-term potential. Historically, whale activity has tended to precede large price moves, as these investors often have better market insights.
If XRP can sustain above $2 and start to break out of key supply areas, a quick recovery is likely. Overcoming these resistance levels could pave the way for renewed bullish momentum and a possible retest of multi-year highs.
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While challenges remain, such as general market uncertainty and caution, the combination of strong support and massive whale accumulation provides an optimistic outlook for XRP in the coming weeks. Holding current levels could mark the beginning of a new upward trajectory.
Test liquidity above $2
XRP is trading at $2.35, marking a strong rebound from the recent decline to $1.95. The rally highlights the resilience of XRP price action as it continues to hold above key support levels. The $1.95 low has proven to be a key point for the bulls, and maintaining this momentum could signal further gains in the coming days.
However, for the rally to gain credibility, XRP must regain the $2.60 mark. This level is a key resistance point and a confirmation area for bullish sentiment. A move above $2.60 could attract more buying interest, pushing XRP to retest multi-year highs.
On the other hand, losing support at $2 would change the narrative. This move will expose XRP to further downside risks and could lead to a deeper correction. Market sentiment remains cautious, and a drop below $2 could lead to accelerated selling pressure.
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Currently, XRP’s prospects depend on its ability to navigate between these key levels. Bulls need to push the price above $2.60 to validate a rebound, while bears are aiming to drag the price below $2 to seize control. The next few trading days will be crucial in defining XRP’s short-term trend.
Featured image from Dall-E, chart from TradingView
