What to Know:
- XRP saw significant accumulation at the $1.75 price level, establishing a new key support.
- XRP’s price resilience has weakened since Ripple’s legal victory, with a new support level forming at $1.75.
- Despite a recent price increase, XRP faces challenges breaking the $2 resistance due to low trading volume and whale activity.
XRP experienced a wave of accumulation as investors capitalized on a recent price dip. On-chain analyst Ali Martinez noted that approximately 1.80 billion XRP were purchased by market participants during this period. This activity highlights the continued interest in XRP despite market volatility and regulatory uncertainties.
According to Martinez, the substantial XRP buying occurred when the price declined to $1.75, establishing this level as a crucial support point. This support zone is anticipated to hold firm, as investors are likely to step in and buy more XRP if the price approaches this level again. The significant volume of XRP acquired at $1.75 reinforces its importance as a price floor.
XRP’s performance has been closely watched, especially after Ripple’s legal win against the SEC. Many expected immediate approval of XRP ETFs, potentially driving a bullish rally. However, XRP has since fallen from its previous $3 level, highlighting that regulatory clarity alone isn’t enough to sustain upward momentum.
Currently, XRP is trading around $1.91, showing a recent 2.43% increase. It faced rejection at $1.99 while attempting to reclaim the $2 level, likely due to a 29% dip in trading volume to $6.37 billion. Overcoming the $2 resistance will require increased buying pressure and sustained market interest.
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Recent data indicates that whale wallets dumped 200 million XRP, valued at around $400 million, into the market. This oversupply contributed to the price struggling to break through resistance levels. However, XRP’s Bollinger Bands suggest the bullish structure remains intact, potentially leading to a rally if trading volume increases.
In conclusion, while XRP has shown resilience with the establishment of a new support level, overcoming resistance and fostering sustained growth will depend on increased trading volume and positive market sentiment. Investors should monitor these factors closely to gauge XRP’s potential for future gains.
Source: Original article
