XRP has faced a sharp decline in the past few days, dropping over 23% since Tuesday. This steep adjustment reflects broader market turmoil, exacerbating negative sentiment around XRP. However, beneath this bearish price action, significant developments are emerging.

Key on-chain data from Santiment shows that whales are taking advantage of this drop. In just the past 24 hours, these large holders have accumulated an additional 110 million XRP, indicating strong 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 intimidated by short-term price fluctuations but are focused on XRP's potential in the coming months. As retail traders have grown increasingly cautious during the recent downturn, the behavior of these large holders highlights a different perspective.

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

XRP holds key levels

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

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 long-term potential of the asset. Historically, whale activity during price declines often indicates preparation for a recovery.

XRP whales are cashing in | Source: Ali Martinez on X

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

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 to watch

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 has left the market uncertain, with XRP holding above the critical $1.90 low. Currently, these levels suggest that the asset may enter a prolonged range-bound trading phase, oscillating between $1.90 and $2.60 in the coming 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 indecisiveness may lean bearish. With XRP's trading price slightly above the significant psychological threshold of $2, a continued lack of bullish momentum could lead to substantial sell-offs. If bears take control, the lack of strong support below $2 could pave the way for a deeper correction, eroding recent gains.

For XRP to escape 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 sentiment shifts to gauge the next steps. Without a decisive breakout, the price may face increasing pressure, and a failure at the $1.90 support level could lead to a more pronounced decline.