XRP has experienced a pointed correction over the past few days, falling more than 23% since Tuesday amid increased market volatility. Despite this pointed downturn, XRP has shown resilience, bouncing back yesterday and registering a notable 20% gain. This rapid rebound has reignited discussions about XRP’s long-term prospects, even though near-term sentiment remains uncertain.

According to data shared by prominent cryptocurrency analyst Ali Martinez, whales have accumulated 80 million XRP since the correction began on December 17. This surge in whale activity suggests growing confidence from gigantic investors who appear to be taking advantage of the opportunity to purchase XRP at lower prices. prices. Such accumulation often signals long-term bullish prospects, even when there are periods of uncertainty in the broader market.

While XRP’s recovery is encouraging, it comes against a backdrop of negative sentiment and price volatility. The coming days will likely be crucial in determining whether XRP can maintain its upward momentum or whether further consolidation is on the horizon. For now, whale activity is encouraging, indicating continued interest in the asset despite recent setbacks.

XRP whale charging

XRP is currently trading 22% below its multi-year high of $2.90, following a period of increased market volatility. Despite the recent turbulence, XRP has held above the low of $1.90 – a critical support level that serves as the bulls’ last line of defense. Maintaining this level is indispensable to maintaining the broader bullish structure and preventing a deeper correction.

The latest data from Santimentshared by cryptocurrency analyst Ali Martinez, highlights a significant development: whales have purchased 80 million XRP since the correction began on December 17.

This accumulation by gigantic investors suggests growing confidence in XRP’s long-term potential despite the short-term price decline. Historically, whale activity often preceded significant price movements because these investors typically had access to better market knowledge.

If XRP manages to maintain its position above $2 and begins to break through key supply zones, a quick recovery could occur. Breaking these resistance levels would likely pave the way for renewed bullish momentum, with the potential to retest multi-year highs.

While challenges remain, such as prevailing market uncertainty and cautious sentiment, the combination of powerful support and significant whale accumulation provides an positive outlook for XRP in the coming weeks. Maintaining current levels could signal the beginning of a fresh upward trajectory.

Testing liquidity above $2

XRP is trading at $2.35, marking a powerful rebound after recently falling to $1.95. This rebound highlights the resilience of XRP price action, which continues to hold above key support levels. The low of $1.95 has proven to be a turning point for bulls, and maintaining this momentum could signal further gains in the coming days.

However, for the rally to gain credibility, XRP must regain the $2.60 mark. This level serves as a critical resistance point and confirmation zone for bullish sentiment. A break above $2.60 would likely attract more buying interest, pushing XRP towards retesting multi-year highs.

On the other hand, losing the $2 support level would change the narrative. Such a move would expose XRP to further downside risk, potentially leading to a deeper correction. Market sentiment remains cautious and a break below $2 could result in accelerating selling pressure.

For now, XRP’s prospects depend on its ability to move between these key levels. Bulls will need to push the price above $2.60 to confirm the rally, while bears will want to push the price below $2 to gain control. The next few sessions will be crucial in defining the short-term trend of XRP.

Featured image from Dall-E, chart from TradingView