XRP has recently faced a significant correction, plummeting over 23% since Tuesday. This downturn comes in the wake of increased market volatility. However, despite the sharp decline, XRP has demonstrated resilience with a remarkable 20% recovery since yesterday. This quick rebound has reignited discussions about XRP’s long-term potential, even though short-term market sentiment remains uncertain.
Whale Activity Signals Confidence in XRP
According to insights shared by well-known crypto analyst Ali Martinez, there has been a noteworthy accumulation of 80 million XRP by whales since the correction started on December 17. This surge in whale activity indicates a growing confidence among large investors, who are capitalizing on the opportunity to purchase XRP at reduced prices. Such accumulation is often a precursor to a long-term bullish outlook, even as the broader market faces uncertainty.
While XRP’s recovery is encouraging, it occurs against a backdrop of negative sentiment and price instability. The upcoming days will be crucial in determining whether XRP can maintain its upward momentum or if further consolidation is on the horizon. For now, whale activity provides a glimmer of optimism, suggesting sustained interest in the asset despite recent setbacks.
XRP Whales Loading Up
XRP is currently trading 22% below its multi-year high of $2.90, following a period of heightened market volatility. Despite recent turbulence, XRP has maintained its position above the $1.90 low—a crucial support level that acts as the bulls’ last line of defense. Maintaining this level is vital for preserving the broader bullish structure and preventing a deeper correction.
Recent data from Santiment, shared by crypto analyst Ali Martinez, highlights a significant development: whales have purchased 80 million XRP since the correction began on December 17. This accumulation by large investors suggests a growing confidence in XRP’s long-term potential despite the short-term price decline. Historically, whale activity has often preceded significant price movements, as these investors typically have access to better market insights.
If XRP can sustain its position above $2 and begin to push through crucial supply zones, a rapid recovery could follow. Overcoming these resistance levels would likely pave the way for renewed bullish momentum, with the potential to retest multi-year highs.
Testing Liquidity Above $2
XRP is trading at $2.35, marking a strong recovery from its recent dip to $1.95. This rebound underscores the resilience of XRP’s price action, as it continues to hold above key support levels. The $1.95 low has proven to be a pivotal point for bulls, and maintaining this momentum could signal further 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. Breaking above $2.60 would likely attract more buying interest, propelling XRP toward retesting multi-year highs.
On the flip side, a loss of the $2 support level would shift 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 accelerated selling pressure.
Outlook and Future Prospects
For now, XRP’s outlook hinges on its ability to navigate between these crucial levels. Bulls will need to push the price above $2.60 to validate the rally, while bears will aim to drag it below $2 to seize control. The next few sessions will be critical in defining XRP’s short-term trend.
