XRP has experienced a significant downturn in recent days, shedding over 17% of its value since Tuesday. Despite this sharp decline, key on-chain data from Santiment highlights that whales are capitalizing on the dip.
According to Santiment data, large holders have accumulated an additional 110 million XRP in the last day, signaling strong confidence in the asset’s potential.
The activity of whales during XRP’s price drop suggests a calculated approach to long-term gains. Historically, significant whale accumulation during periods of negative market sentiment has often preceded a recovery.
Currently, per Coinmarketcap data, XRP’s price is consolidating within the range of $2.00 to $2.90, following a brief dip to $1.96. Analysts believe this consolidation could signal a potential breakout. However, XRP’s price remains 27% below its multi-year high of $2.90, echoing the challenges the asset faces in the short term.
Analysts: XRP’s key support levels remain intact
Ripple’s native coin has managed to hold above a critical support level of $1.90, which analysts regard as the bulls’ last line of defense. Maintaining this level is crucial for preserving the bullish structure that has defined XRP’s recent price action. The resilience of this support zone provides a glimmer of stability amid broader market uncertainty.
The crypto’s recent price movement has been marked by sharp declines and subsequent recoveries. Over 36 hours, the asset plummeted to under $2.25, losing nearly 20% of its value. The situation worsened as the coin fell below $2 for only the third time since December 1, marking a 28% drop from Tuesday’s high of $2.72 to a low of $1.96 by the end of Friday.
However, the bulls intervened at this critical juncture, halting further losses and sparking a rebound. The token has since recovered approximately 13%, currently trading between the $2.25 and $2.30 levels.
According to crypto analyst Dark Defender, the charts indicate a potential turning point. Observations of a “double tap” on the 4-hour Relative Strength Index (RSI) and price, coupled with a “tremendous bullish pin” on the daily chart, suggest that the asset may have bottomed and could be poised for further gains.
Egrag Crypto, a prominent strategist, dismissed the recent price downtick as a bearish signal, describing it as a retest of XRP’s December 10 low.
#XRP – Noise 🔇
1) TA Perspective: Just Noise
From a TA standpoint, all this Saga is simply noise! 📉 #XRP is currently retesting the December 10th low of $1.9, which could set up a double bottom formation.2) Macro Range Behavior
This formation is part of a macro range,… pic.twitter.com/ejEoF3jQHb— EGRAG CRYPTO (@egragcrypto) December 20, 2024
He suggested that even a temporary dip below $1.90 might not be alarming, as it could form a bullish double bottom on higher time frames, a pattern often associated with potential rebounds.
When can XRP reach $4?
Meanwhile, analysts have expressed varying opinions on XRP’s chances of reaching $5. Some experts like Antonio Di Giacomo of XS.com speculated that the asset could reach $3 by the end of 2024.
Hani Abuagla, an analyst at the exchange platform XTB, highlighted the wide range of predictions for Ripple’s native coin future. While optimistic scenarios see the price soaring to $100, more conservative estimates project $5, a level that would still mark a doubling of XRP’s current value.
Abuagla’s optimism stems from expectations that President-elect Donald Trump’s administration may ease regulatory scrutiny on digital assets and Ripple’s continued progress in cross-border payments. However, he also cautioned that the coin’s long-term price outlook remains highly uncertain, with significant volatility likely ahead.
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Source: https://www.cryptopolitan.com/xrp-whale-activity-13-up-4-price-in-sight/