What to Know:
- XRP experienced a distribution-driven decline, with whale wallets dumping nearly 200 million tokens, creating downward pressure.
- Support at $1.90–$1.91 emerged as a key battleground, attracting aggressive buying after a capitulation event at $1.895.
- Traders should watch the $1.90 level closely, as a close below it could open the path toward October’s deep liquidity pockets.
XRP recently experienced notable volatility, driven by significant whale activity and broader market conditions. The digital asset saw a classic distribution-driven decline, but early reversal signals are emerging. Investors are closely watching key price levels and ETF flows for potential catalysts.
Whale wallets offloaded nearly 200 million XRP tokens, intensifying supply pressure and pushing the price into a descending channel. This distribution wave overwhelmed the $1.96 resistance band, contributing to intraday volatility. The market-wide risk-off sentiment, influenced by Bitcoin’s movements, added further pressure on XRP.
Support at $1.90–$1.91 has become a critical level, attracting buying interest after a capitulation event at $1.895. Momentum indicators, such as RSI and short-term stochastic oscillators, have indicated oversold conditions, presenting a potential bullish divergence. A strong volume spike during the bounce suggests early accumulation, hinting at a possible trend reversal.
For traders, maintaining the $1.90 level is crucial; failure to do so could lead to further declines. Reclaiming $1.96 is essential to neutralize the descending channel and restore bullish momentum. Positive ETF flows, particularly in Bitwise’s XRP ETF, could act as upside catalysts.
In conclusion, while XRP faces ongoing challenges from whale distribution and market volatility, emerging technical signals suggest potential for a near-term bounce. Investors should closely monitor key price levels, ETF activity, and overall market sentiment to navigate the current landscape.
Source: Original article
