XRP has been on a steep decline over the past few days, losing more than 23% of its value since Tuesday. This acute correction reflected turbulence in the broader market, deepening negative sentiment around XRP. However, significant changes are emerging beneath the surface of this bearish price action.

Key chain data from Santiment shows that whales benefit from being submerged. In the last 24 hours alone, these enormous holders have accumulated an additional 110 million XRP, showing high confidence in the asset’s long-term prospects. Historically, whale activity during periods of negative sentiment often signaled strategic positioning for future profits.

This accumulation trend suggests that whales are not discouraged by short-term price swings and are instead focused on XRP’s potential in the coming months. As retail traders become increasingly cautious in the wake of the recent decline, the actions of these enormous holders highlight a different perspective.

While the immediate outlook for XRP remains uncertain, the noticeable whale activity is a bullish indicator in the longer term. It’s unclear whether this signals a bottom or simply positions XRP towards a broader recovery, but it’s clear that the huge players are looking beyond the current market turmoil.

Key levels of XRP holding

XRP is currently trading 28% below its multi-year high of $2.90, but has managed to stay above the critical support level at $1.90. This zone, considered the bulls’ last line of defense, has proven to be resilient to the recent market volatility. Maintaining above this level is imperative to maintaining the bullish structure that has characterized XRP’s recent price action.

Key Santiment indicators also add to the optimism: shared by crypto analyst Ali Martinezshowed that XRP whales were actively accumulating during the pullback. Over the past 24 hours, these enormous holders have purchased an additional 110 million XRP, underscoring their belief in the asset’s long-term potential. Historically, whale activity during price declines often signaled preparations for an economic recovery.

The next step for XRP to regain momentum will be to exceed the critical supply levels that previously inhibited upward movements. A break above these zones could trigger a rapid rally, pushing XRP closer to multi-year highs.

Powerful support at $1.90 and continued whale accumulation suggest a positive outlook for the coming weeks. However, maintaining current levels and overcoming resistance will be crucial for XRP to realize 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 regain the key $2.60 level. This inability to continue to rise has left the market choppy, with XRP holding above a critical low at $1.90. For now, these levels suggest that the asset may enter an extended period of trading in a volatile range, hovering between $1.90 and $2.60 in the coming days.

However, market sentiment remains delicate and this indecision could tilt towards the bearish side if overall sentiment does not improve. With XRP trading just above the psychologically significant $2 mark, the continued lack of bullish momentum could lead to a significant sell-off. If bears take control, the lack of sturdy support below $2 could pave the way for a deeper correction, weakening recent gains.

For XRP to get out of this indecisive phase, a clear recovery to the $2.60 level is necessary to restore confidence among the bulls. Until then, traders and traders will likely remain cautious, closely monitoring price movements and changes in sentiment to gauge the next direction of movement. Without a decisive breakout, the price could face increasing pressure, threatening a more significant decline if the $1.90 support fails.

Featured image from Dall-E, chart from TradingView