Date: Wed, Jan 08, 2025, 05:40 PM GMT
The cryptocurrency market has faced a sharp downturn over the past 48 hours, with Bitcoin (BTC) dropping from $102K to its current level of $94K. This sharp decline triggered liquidations totaling $660 million in the last 24 hours, according to Coinglass. BTC dominance also surged, rising above 58% from yesterday's low of 57.52%.This bearish sentiment has weighed heavily on major altcoins.
However, XRP has managed to hold its ground with a narrow gains, despite significant whale sell-offs and overall market uncertainty.
Source: Coinmarketcap
Whales Sell-Off
While the market correction has shaken both retail investors and whales, XRP's resilience stands out. According to insights from crypto analyst @ali_charts, whales sold 60 million XRP in the last 24 hours, amounting to approximately $142 million at an average price of $2.37.
Source: @ali_charts (X)
Despite this sell-off, XRP has maintained critical support levels, signaling strong buying interest from other market participants.
Holds Key Support:
$XRP is currently trading within a symmetrical triangle pattern, a consolidation setup that typically precedes a significant breakout. The token found key support at $2.20 (highlighted by the blue line in the chart), which has acted as a springboard for its current recovery to $2.31.
With this bounce, XRP is testing the triangle’s upper resistance once again. A decisive move beyond this level could pave the way for a substantial upward trend.
What’s Next for XRP?
If the $2.20 support level continues to hold, XRP has the potential to:
Retest the upper resistance of the triangle near $2.40.
Break out of the triangle, potentially initiating a bullish rally toward the $2.90 resistance zone.
However, a failure to hold $2.20 could bring the $2.07 support level into play, a critical zone that must hold to avoid further downside risks.
Technical Indicators:
MACD: Momentum is neutral, with signs of waning bearish pressure.
RSI: Currently at 52.81, indicating a balanced market sentiment with no extreme overbought or oversold conditions.
Conclusion
XRP has shown remarkable strength despite challenging market conditions and large-scale sell-offs by whales. Its ability to hold key support at $2.20 and test the symmetrical triangle’s resistance makes it a coin to watch in the coming days.
Investors should closely monitor the $2.20 support level and the resistance near $2.46. A breakout could signify the beginning of a new bullish phase for XRP, while a breakdown might invite further consolidation or downside.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
