XRP has suffered a steep 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 significant 20% recovery since yesterday. This rapid rebound has revived discussions about XRP’s long-term prospects, even as short-term sentiment remains shaky.
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According to data shared by leading crypto analyst Ali Martinez, whales have amassed 80 million XRP since the correction began on December 17th. This increase in whale activity reflects growing confidence among large investors, who appear to be seizing the opportunity to buy XRP at a lower price. Such rallying in prices often signals a long-term bullish outlook, even as the broader market navigates periods of uncertainty.
While XRP’s recovery is encouragingThis comes amid a backdrop of negative sentiment and price volatility. The coming days will likely prove crucial in determining whether XRP can maintain its upward momentum or if further consolidation is on the horizon. For now, whale activity offers a glimmer of optimism, signaling continued interest in the asset despite recent setbacks.
The XRP whale is loading
XRP is currently trading 22% below its multi-year high of $2.90, following a period of heightened market volatility. Despite the recent turmoil, XRP has held its ground above the $1.90 lows – an important support level that serves as the bulls’ last line of defense. Holding this level is essential to preserve the broader bullish structure and prevent a deeper correction.
Latest data from SentimentShared by crypto analyst Ali Martinez, highlights an important development: whales have bought 80 million XRP since the correction began on December 17th.
This accumulation by large investors suggests growing confidence in XRP’s long-term potential despite the short-term price drop. Historically, whale activity often precedes significant price movements, as these investors typically have access to better market insight.
If XRP can maintain its position above $2 and begin to push past important supply zones, a swift recovery could be in the offing. Overcoming these resistance levels will likely pave the way for new bullish momentum, with the possibility of a retest of multi-year highs.
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While challenges remain, such as current market uncertainty and cautious sentiment, the combination of strong support and significant whale accumulation offers an optimistic outlook for XRP in the coming weeks. Holding current levels could signal the start of a new upward trajectory.
Check liquidity above $2
XRP is trading at $2.35, indicating a strong recovery from its recent decline to $1.95. This rebound underscores the resilience of XRP’s price action, as it continues to hold above key support levels. The low of $1.95 proved to be a key point for the bulls, and sustaining this momentum could signal more gains in the coming days.
However, for the rally to gain credibility, XRP must reclaim the $2.60 mark. This level serves as a critical resistance point and a confirmation zone for bullish sentiment. A break above $2.60 will likely attract more buying interest, prompting XRP to retest multi-year highs.
On the flip side, a loss of the $2 support level would change the narrative. Such a move would expose XRP to further downside risks, potentially leading to a deeper correction. Market sentiment remains cautious, and a break below $2 could result in sharp selling pressure.
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For now, XRP’s outlook depends on its ability to navigate between these critical 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 gain control. The next few sessions will be crucial in defining XRP’s short-term trend.
Featured images from Dall-E, charts from TradingView
