What to Know:
- XRP experienced a significant price drop due to large whale wallets offloading nearly 200 million tokens, creating downward pressure.
- Despite the selling pressure, support formed around the $1.90-$1.91 level, leading to a late-session reversal and potential accumulation behavior.
- Traders should monitor key levels such as $1.90 and $1.96, along with ETF flows and Bitcoin’s volatility, to gauge XRP’s short-term trajectory.
XRP recently faced a distribution-driven decline, presenting both challenges and potential opportunities for traders. The digital asset experienced significant volatility as whale wallets dumped a substantial amount of tokens, impacting its price. However, technical indicators suggest a possible reversal, contingent on key support and resistance levels holding firm.
Whale activity played a crucial role in XRP’s recent price action. Major holders offloaded nearly 200 million XRP tokens, overwhelming the $1.96 resistance band and pushing the asset into a descending channel. This distribution wave intensified selling pressure, leading to a capitulation bottom at $1.895.
Despite the downward pressure, support emerged around the $1.90-$1.91 level, acting as a key battleground. This psychological level attracted aggressive buying after the capitulation event, reversing the intraday trend. The strong volume spike during the bounce indicates early accumulation behavior, potentially signaling a shift in market sentiment.
The introduction of XRP ETFs, such as Bitwise’s new offering, could influence future price movements. Bitwise’s ETF saw significant first-day volume and AUM, suggesting strong institutional interest. Monitoring ETF flows and AUM trajectory may provide insights into potential upside catalysts for XRP.
In conclusion, XRP’s recent price action reflects a distribution-driven decline followed by early-stage reversal signals. Traders should closely monitor key levels, ETF flows, and overall market sentiment to navigate potential opportunities and risks. Successfully reclaiming $1.96 is essential to neutralize the descending channel and restore short-term bullish momentum.
Source: Original article
