Over the past few days, XRP has experienced a downward trend similar to the broader cryptocurrency market. Despite this dip, the XRP price has successfully held onto its crucial support levels, positioning itself for a potential rebound. Let’s delve into the technical analysis and market trends influencing XRP’s movements.
Critical Levels to Monitor: $2.20 Support and $2.70 Resistance
The cryptocurrency market has been under substantial selling pressure since December 17, primarily due to Bitcoin’s drop below its support levels. This has led to significant price corrections across various digital currencies. XRP, in particular, saw its price plummet from $2.708 on December 17 to a low of $1.98 on December 20, marking a 27% decrease in just three days.
Following this dip, XRP managed to bounce back and regain the $2 mark. Currently, XRP is trading around $2.2, although it is still down by 7% on a weekly scale. Crypto analyst Ali Martinez has been closely monitoring XRP’s movement around the $2.2 level, suggesting that this could be a pivotal point for XRP’s short-term bullish prospects.
As of now, XRP is trading at $2.27. Should the $2.20 support hold steady, the token might enter a consolidation phase, with another attempt at breaching the $2.70 resistance on the horizon. A strong bullish surge above $2.7 could potentially propel XRP above $3, a level it hasn’t reached in years. Conversely, if the price falls below $2.20, it may trigger a swift decline toward $1.96, potentially attracting new buyers at that point.
Whale Accumulation Amid Market Correction
On-chain data from Santiment indicates that XRP has piqued the interest of large investors, often referred to as ‘whales’, during this market correction. Wallets holding between 1 million and 10 million XRP coins have collectively accumulated an additional 80 million XRP since December 17. This accumulation reflects a strong belief in XRP’s long-term potential among these significant holders. Such accumulation could act as a buffer against further declines below the $2 mark, paving the way for a recovery.
Further adding to the optimistic outlook, technical analysis using Elliot impulse waves suggests that the recent dip below $2 might represent the completion of the second corrective wave. This sets the stage for the anticipated third bullish impulse wave to commence, potentially driving XRP’s price upward.
Conclusion
In summary, XRP’s ability to maintain its support at the $2.20 level is crucial for its short-term upward trajectory. With the possibility of breaking through the $2.70 resistance, investors and traders are keeping a close watch on these pivotal levels. As market dynamics continue to evolve, XRP’s performance will be influenced by both technical indicators and market sentiment, especially among large-scale investors.
