Key Insights:
- XRP price retreated to $2 amid a broader crypto market selloff this week.
- The number of Ripple whale wallets is decreasing, but the remaining whales are accumulating more coins.
- Analyst hints at a recovery to $2.27 in the near future if a key support level holds.
XRP price was one of the top laggards among the top players in the crypto market, witnessing a slump of nearly 2% at the time of writing. The recent dip below the brief $2 support has spooked traders, with many anticipating the crypto to fall further amid the gloomy start of December.
Notably, the broader crypto market started the week on a low note, impacting nearly all the top assets in the space. The Ripple coin was no exception, which has also followed the broader market trend and recorded a massive selling pressure since December 1.
Meanwhile, it seems that the plunge was mostly caused by the selling pressure from the large investors, often known as whales. However, despite that, recent data from a top on-chain analytics platform suggest that some traders are still optimistic about the future potential of the asset.
So, here we look at the recent activity of the whales and see what may lie ahead for the asset. In addition, a renowned expert has also highlighted the key XRP price levels to watch for its potential future movements.
XRP Price Slips Amid Whale Selloff
XRP price was down more than 2% but maintained the brief support at $2.02 at the time of writing. Its trading volume recorded a slight uptick by 3% to $4 billion, suggesting muted trading activity since yesterday.
It’s worth noting that Ripple coin price has lost more than 8% in the weekly chart, with a decline of over 20% over the past month. Besides, the crypto has touched a low of $1.99 and a high of $2.06 in the past 24 hours.
Meanwhile, the crypto has been consolidating near the $2.2 area last week, after a robust surge from a dip below $2. A flurry of experts said that the surge last week has allowed the large investors or whales to offload their holdings to book profits.
Amid this, the leading on-chain analytics platform, Santiment, said that the XRP Ledger is witnessing an intriguing trend. According to the report, XRP whale and shark wallets are decreasing in number but accumulating more coins.
According to Santiment, there’s been a 20.6% decline in wallets holding over 100 million XRP in the past eight weeks. However, these wallets now collectively own 48 billion XRP, a seven-year high.
This phenomenon suggests that while some large holders are offloading their assets, others are accumulating more XRP. The remaining whales are likely consolidating their positions, indicating confidence in the future prospects of XRP price.
What’s Next for Ripple Coin?
Amid the whale activity, the XRP ETF is also getting immense traction in recent days. According to SoSoValue data, the XRP ETF has recorded an inflow of $89.65 million on December 1, showcasing the increased confidence of the institutions towards the asset.
The cumulative total net inflow into the investment instrument totaled $756.26 million. Having said that, it seems that the institutions are actively betting on the asset, and this continuing trend could help in a strong recovery for the asset.
Looking at the XRP price chart, analyst CRYPTOWZRD noted that the crypto must hold the $2.02 support to avoid further fall.
His chart also suggests that the next major resistance lies at $2.27, breaking which could trigger a short-term rally to $2.75 or even $3.