XRP has faced a sharp decline over the past few days, dropping more than 23% since Tuesday. This sharp adjustment reflects wider market turmoil, exacerbating negative sentiment surrounding XRP. However, beneath the surface of this bearish price action, significant developments are emerging.

Key on-chain data from Santiment shows that whales are taking advantage of this dip. In just the past 24 hours, these large holders have accumulated an additional 110 million XRP, indicating confidence in the long-term prospects of the asset. Historically, whale activity during periods of negative sentiment often signals strategic positioning for future gains.

This accumulation trend suggests that whales are not deterred by short-term price fluctuations but are focused on XRP's potential in the coming months. As retail traders become increasingly cautious in the recent downturn, the behavior of these large holders highlights a different perspective.

While XRP's near-term outlook remains uncertain, significant whale activity is a bullish indicator in the long run. Whether this signals a bottom or simply places XRP in a broader recovery phase remains to be seen, but it is evident that major players are looking beyond the current market turmoil.

XRP holds a key level

XRP's current trading price is 28% lower than its multi-year high of $2.90, but it has successfully remained above the key support level of $1.90. This area is seen as the last line of defense for bulls, proving resilient amid recent market volatility. Staying above this level is critical to maintaining the bullish structure of XRP's recent price action.

More optimistically, key indicators shared by crypto analyst Ali Martinez from Santiment show that XRP whales are actively accumulating during the pullback. In the past 24 hours, these large holders have purchased an additional 110 million XRP, underscoring their confidence in the asset's long-term potential. Historically, whale activity during price declines often indicates preparation for recovery.

XRP whales are loading up | Source: Ali Martinez on X

The next step for XRP to regain momentum is to break through the previously stagnant upward levels. A breakout from these areas could trigger a swift rebound, bringing XRP closer to its multi-year highs.

The strong support level at $1.90 and ongoing whale accumulation suggest an optimistic outlook for the coming weeks. However, maintaining current levels and overcoming resistance is crucial for XRP to capitalize on this potential and reignite its bullish trajectory.

Technical levels worth watching

XRP is trading at $2.06, reflecting a loss of momentum after failing to reclaim the crucial $2.60 level. This inability to push higher makes the market uncertain, with XRP remaining above the key low of $1.90. Currently, these levels suggest that the asset may enter a prolonged range-bound trading pattern, oscillating between $1.90 and $2.60 over the next few days.

XRP maintains key demand above $2 | Source: XRPUSDT chart on TradingView

However, market sentiment remains fragile, and if overall sentiment does not improve, this indecision may lean towards bearish. With XRP's trading price slightly above the important psychological level of $2, a continued lack of bullish momentum could lead to significant sell-offs. If bears take control, a lack of strong support below $2 could pave the way for a deeper correction, eroding recent gains.

For XRP to break free from this indecisive phase, it must clearly reclaim the $2.60 level to restore bullish confidence. Until then, traders and investors may act cautiously, closely monitoring price movements and shifts in sentiment to gauge the next steps. Without a decisive breakout, the price may face increasing pressure, and if the $1.90 support fails, a more pronounced decline could occur.