XRP has recently experienced a significant correction, dropping over 23% since the beginning of the week due to increased market volatility. However, the cryptocurrency has shown resilience, bouncing back with a 20% recovery in just one day.
Despite uncertain short-term sentiment, there are discussions about XRP's long-term potential. Large investors, known as whales, have continued to accumulate XRP despite the price fluctuations, indicating a potential bullish outlook. Data from crypto analyst Ali Martinez reveals that whales have purchased 80 million XRP since the correction began on December 17. This accumulation trend by whales often precedes significant price movements, suggesting a positive sentiment for the long term.
XRP is currently trading at $2.35, recovering from a dip to $1.95, a critical support level. Holding above this level is important for maintaining the bullish structure. Reclaiming the $2.60 mark would attract more buying interest and potentially lead to retesting multi-year highs. However, a loss of the $2 support level could expose XRP to further downside risks.
The recent accumulation by whales and strong support levels offer an optimistic outlook for XRP in the coming weeks. Market uncertainty and negative sentiment pose challenges, but XRP's ability to maintain its position above $2 and attract buying interest will be crucial. The interplay between whale activity and market sentiment will shape XRP's future.