XRP Signals Support Loss: What’s Next?

What to Know:

• XRP has slipped below a key support level of $1.90, triggering concerns of a potential price slump.
• The broader market context involves a correction since July, leading to increased bearish sentiment.
• Whale accumulation and negative sentiment may signal a potential reversal for XRP.

XRP is currently trading below $1.90, a level that analysts had identified as crucial for maintaining a bullish market structure. After a period of correction that began in July, the digital asset has struggled to maintain positive momentum. Recent market data suggests a possible shift in sentiment, with potential accumulation by large holders.

Technical Analysis: Key Support Levels Breached

XRP’s inability to hold above $1.90 has raised concerns among market participants. After briefly dipping below $1.80 earlier in the month, the asset found temporary support, but has since failed to maintain this level. A decisive break below this support could lead to further price declines, with some analysts suggesting a potential drop to $1.10 if bearish momentum continues.

Market Sentiment: From Bullish to Bearish

The overall market sentiment towards XRP has turned predominantly negative, reflecting the asset’s correction over the past several months. Social media commentary indicates a rise in bearish sentiment, which some analysts view as a potential contrarian indicator. Historically, extreme negative sentiment has sometimes preceded price recoveries in XRP.

Whale Activity: Accumulation Trends

Despite the prevailing bearish sentiment, data indicates that large holders, or “whales,” have been quietly accumulating XRP. This accumulation trend is notable because these entities had been net sellers of XRP since early October. The shift in behavior could signal a change in expectations among these major market participants.

TD Sequential Sell Signal

Earlier in the week, XRP experienced a brief rally to $1.95, which then triggered a sell signal from the TD Sequential indicator. This technical signal often precedes a retracement, which materialized as XRP fell back below the $1.90 level. The TD Sequential is a set of indicators designed to identify potential exhaustion points in price trends.

XRP and Broader Market Liquidity

XRP’s performance is often viewed in the context of broader cryptocurrency market liquidity. As a major digital asset, its price movements can influence and be influenced by overall market conditions. Monitoring liquidity trends and trading volumes can provide insights into potential future price movements for XRP and other cryptocurrencies.

In conclusion, XRP’s recent price action has raised concerns, but underlying data on whale accumulation and market sentiment suggest that a potential reversal could be on the horizon. Market participants should closely monitor key support and resistance levels, as well as broader market trends, to make informed decisions.

Related: XRP Price Prediction: 2026 Forecast

Source: Original article