XRP Faces Price Drop, But $60.7M Outflow Could Signal a Buying Opportunity

XRP, the token from Ripple Labs, has hit a rough patch recently, failing to hold a key support level, which has many fearing a further price drop. Despite this, it seems that long-term holders and big investors are still scooping up the asset, taking advantage of the dip, according to on-chain data from Coinglass.

What Went Wrong with XRP’s Bullish Trend?

Not too long ago, XRP was looking promising, with many expecting a big rally. On January 2, 2024, the coin broke out of a bullish pattern, leading to a brief period of consolidation. However, the recent price drop has caused it to slip out of that consolidation zone, raising concerns that a deeper decline may be on the horizon.

$60.7M Worth of XRP Moving Off Exchanges

Interestingly, despite the price downturn, whales and dedicated long-term holders have been pulling large amounts of XRP off exchanges. In just 24 hours, over $60.7 million worth of XRP left exchanges, a sign that investors may be preparing for a potential rebound. When this kind of outflow happens, it often points to a belief that the price will rise in the future.

XRP’s Current Price and Market Activity

At the moment, XRP is priced at around $2.30, having dropped 4.9% over the past 24 hours. However, the trading volume has seen a sharp increase of 85%, indicating more interest and activity from traders. This uptick in volume could signal that investors are closely watching for the right moment to enter, making the next few days crucial for XRP’s price action.