XRP’s Comeback Story: Whale Moves, Key Levels, and What’s Next

XRP has demonstrated resilience following a sharp correction of over 23% earlier this week, rebounding with a robust 20% recovery in the last 24 hours. Trading at $2.35, XRP remains 22% below its multi-year high of $2.90, yet the recent price action has reignited discussions about the asset’s long-term viability. Key support at $1.95 has held firm, providing a critical foundation for bulls to regain momentum.

Whale Accumulation: A Bullish Indicator?

Recent on-chain data from Santiment, cited by crypto analyst Ali Martinez, reveals that whales have accumulated 80 million XRP since the correction began on December 17. Whale activity is often viewed as an indicator of smart money entering the market, signaling confidence in an asset’s long-term potential. Historically, significant whale accumulation has preceded major price movements, suggesting that large investors may be positioning themselves for a potential rally.

This accumulation aligns with XRP holding key support levels, reinforcing the narrative that whales see the recent dip as a buying opportunity rather than a signal of prolonged bearishness.

Key Levels to Watch

Support at $1.95

The $1.95 level has emerged as a crucial support zone for XRP. A failure to hold this level could lead to a deeper correction, with the next significant support at the 50-day EMA near $1.77. Maintaining this level is essential for preserving the asset’s broader bullish structure.

Resistance at $2.60

XRP’s recovery must overcome resistance at $2.60 to solidify bullish momentum. This zone acts as a key supply level, and reclaiming it would likely attract additional buying interest, setting the stage for a potential retest of multi-year highs near $2.90. Breaking this resistance would confirm a bullish breakout and signal a renewed uptrend.

Short-Term Outlook

XRP’s current price action suggests a tug-of-war between bulls and bears. Bulls are focused on maintaining the $2 psychological support level and building momentum to challenge $2.60, while bears aim to push the price below $2, which could lead to accelerated selling pressure.

Technical Indicators

Relative Strength Index (RSI): XRP’s RSI on the 4-hour chart has rebounded from oversold conditions, indicating a potential shift in momentum.

Moving Averages: XRP is trading near its 200-4H EMA, which is acting as short-term support. A sustained move above this level would provide further confidence for buyers.

Descending Triangle: On the daily chart, XRP remains within a descending triangle pattern. A breakout above the upper trendline of this structure could invalidate its bearish implications and signal a continuation of the recovery.

Conclusion

XRP’s recent rebound from its $1.95 low, coupled with significant whale accumulation, paints a cautiously optimistic picture for the asset. While challenges remain, such as breaking through resistance at $2.60, the resilience shown by XRP suggests that it may be gearing up for another rally.

The next few sessions will be critical in determining XRP’s trajectory. Bulls must defend the $2 support level and push past $2.60 to validate the recovery, while bears will aim to exploit any weakness to drive the price lower. For now, the combination of technical support and whale activity provides a glimmer of hope for XRP’s long-term prospects.

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FAQs

What is driving the recent recovery in XRP’s price? XRP’s price recovery is attributed to strong whale accumulation, with large holders adding 80 million XRP during the recent correction. This activity, combined with the defense of critical support levels at $1.95, has bolstered confidence among investors, signaling a potential rally ahead.

What are the key levels to watch for XRP in the short term? The $1.95 level serves as a crucial support, while resistance at $2.60 is the next major hurdle. Breaking above $2.60 could set the stage for XRP to challenge multi-year highs near $2.90. A sustained move below $1.95, however, could lead to further declines toward $1.77.

How significant is whale accumulation for XRP’s future price movement? Whale accumulation is often seen as a bullish indicator, reflecting confidence in an asset’s long-term potential. The recent addition of 80 million XRP by whales suggests that large investors are positioning themselves for a potential price rally, which historically tends to precede significant upward movements.

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