Recently a brief recovery, but the cryptocurrency is facing significant challenges.
Overall market sentiment remains bearish, and price movements are under pressure from widespread selling by whales. This selling activity, along with uncertainty in the market, suggests that the current rise may not last.
XRP whales change their position
Whales, or large holders of Ripple (XRP), are showing signs of bearish sentiment despite the recent price increase. According to recent data, addresses holding between 10 million and 100 million XRP sold over 220 million XRP, valued at approximately $500 million, in the past six days.
This large sell-off indicates that these large investors no longer believe in the possibility of a short-term recovery. The behavior of these large holders is particularly surprising due to their impact on the market.
His decision to exit early indicates a lack of confidence in the continued rise of the price, which could exacerbate downward pressures on XRP in the coming days. The general market conditions also contribute to the price struggles of XRP.
Technical indicators such as the MACD (Moving Average Convergence Divergence) indicate that the cryptocurrency is still facing bearish momentum. The MACD indicator recently turned positive, but the MACD line has not yet crossed above the signal line, suggesting that momentum has not fully changed.
Despite the brief recovery, the lack of a clear positive momentum signal from the MACD means that XRP may struggle to maintain its gains.
XRP price searches for support
XRP is currently trading at $2.27, down 5% over the past three days. The altcoin failed to maintain its support at $2.33 and is now approaching the next critical support level at $2.14.
If the current trend continues, XRP is likely to test this lower support in the coming days, leading to the erasure of some recent gains and causing further delays in any recovery. Continued selling pressure from whales, along with bearish momentum indicators, reinforces the likelihood of further declines.
If XRP fails to regain support at $2.33, it may drop further, pulling the price down to $2.14 or even lower, which would affect investor confidence. On the other hand, if XRP can regain the support level of $2.33, it may reverse its trend and attempt to recover some of its recent losses of 22%.
If this happens, XRP may target the level of $2.60, which could invalidate the bearish thesis and provide a glimmer of hope for continued upward movement.
