What to Know:
- XRP experienced a significant price drop due to large-scale selling by whale wallets, releasing nearly $400 million worth of tokens into the market.
- Despite market volatility, Bitwise’s new XRP ETF shows strong institutional interest, with substantial first-day trading volume and assets under management.
- Technical analysis suggests a potential for a short-term price bounce, but traders should closely monitor key support and resistance levels to navigate ongoing market uncertainty.
XRP experienced a volatile trading session marked by significant selling pressure and a subsequent tentative recovery. The price of XRP fell sharply as whale wallets dumped nearly 200 million tokens, but a late-session reversal hinted at possible accumulation. Traders are now closely watching key levels to gauge the potential for a sustained recovery.
The recent market activity saw XRP decline from $1.96 to $1.91, driven by heavy institutional selling confirmed by a 67% spike in trading volume. Support at the $1.90-$1.91 level proved crucial, attracting aggressive buying interest after a brief dip to $1.895. This level remains critical for determining the short-term trajectory of XRP.
Despite the selling pressure, the launch of Bitwise’s XRP ETF indicates strong institutional demand, evidenced by its impressive first-day volume and AUM. Monitoring the ETF’s flow and AUM trajectory could provide insights into future price movements. Regulatory developments and broader market sentiment will likely influence XRP’s price action.
Technical indicators suggest a potential for a near-term bounce, with oversold conditions and bullish divergences signaling a possible trend reversal. However, the overall market structure remains fragile, and a failure to hold the $1.90 support could lead to further declines. Overcoming the $1.96 resistance is crucial to invalidate the current descending channel and restore bullish momentum.
XRP’s recent price action underscores the importance of monitoring whale activity, ETF flows, and key technical levels. While oversold conditions may lead to a short-term recovery, traders should remain cautious, as the broader market context and regulatory landscape could significantly impact XRP’s performance. Keeping a close watch on Bitcoin’s movements will also be essential, as XRP tends to amplify Bitcoin’s volatility.
Source: Original article
