XRP has seen a major pullback in recent days, losing over 17% of its value since Tuesday. Despite this sharp decline, key on-chain data from Santiment highlights that whales are taking advantage of the decline.
According to Santiment data, top holders have accumulated an additional 110 million XRP in the last day, indicating TRON’s confidence in the asset’s potential.
Whale activity during XRP price declines suggests a calculated approach to long-term gains. Historically, whales have often accumulated heavily during periods of negative market sentiment before a recovery.
Currently, according to Coinmarketcap data, XRP price is consolidating in a range of $2.00 to $2.90, after a brief dip to $1.96. Analysts believe that this consolidation could signal a potential breakout. However, XRP price is still 27% below its multi-year high of $2.90, reflecting the challenges the asset is facing in the short term.
Analysts: Key Support Levels for XRP Remain Intact
Ripple’s native cryptocurrency has managed to hold above the critical $1.90 support level, which analysts consider to be the last line of defense for bulls. Holding this level is crucial to sustaining the bullish structure that has fueled XRP’s recent price action. The resilience of this support area provides a glimmer of stability amidst broader market uncertainty.
The cryptocurrency’s recent price action has been marked by sharp declines and subsequent recoveries. Over the course of 36 hours, the asset fell below $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, recording a 28% decline from Tuesday’s high of $2.72 to a low of $1.96 by the end of Friday.
However, bulls took over at this critical juncture, halting further losses and sparking a recovery. The token has since recovered nearly 13% and is currently trading between the $2.25 and $2.30 levels.
According to crypto analyst Dark Defender, the charts are pointing to a potential turning point. Observations of a “double tap” on the RSI and price on the 4-hour timeframe, along with a “massive bullish pin” on the daily chart, suggest that the asset may have bottomed out and could be poised for further gains.
Egrag Crypto, a prominent strategist, dismissed the recent price drop as a bearish signal, describing it as a retest of XRP’s lows recorded on December 10.
#XRP - Noise 🔇
1) TA perspective: just noise
From TA's perspective, this whole saga is just noise! 📉#XRPis currently retesting its December 10 low at $1.9, which could form a double bottom formation.
2) Total range behavior
This formation is part of a macro range, ... pic.twitter.com/ejEoF3jQHb — EgragCrypto (@egragcrypto) is looking...
He noted that even a temporary dip below $1.90 might not be a cause for concern, as it could form a bullish double bottom on higher time frames, a pattern often associated with a potential bounce.
When can XRP reach $4?
Meanwhile, analysts have expressed mixed views on XRP’s prospects, with some experts like Antonio DiGiacomo of XS.com predicting the asset could hit $3 by the end of 2024.
Hani Abu Akleh, an analyst at exchange XTB, highlighted a wide range of predictions regarding the future of Ripple’s native currency. While optimistic scenarios see the price rising to $100, more conservative estimates point to $5, a level that would still represent a doubling of XRP’s current value.
Abu Akleh’s optimism stems from expectations that President 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 currency’s long-term price outlook remains highly uncertain, with significant volatility likely in the future.