XRP has struggled to break out of its downtrend this week, with the altcoin continuing its decline. Despite efforts to gain upward momentum, it has faced multiple challenges, and the price remains volatile.
XRP’s fate may now depend on the actions of whales, who could help keep the price above the critical $2.00 level.
XRP Investors Choose To Accumulate
In recent days, XRP whales have seized the opportunity presented by the current low prices. Over the span of just 48 hours, addresses holding between 100 million and 1 billion XRP accumulated nearly 900 million XRP, valued at over $1.9 billion.
This mass accumulation signals a strong belief among these large holders that XRP’s price will eventually rise. Their buying power can potentially prevent further decline, acting as a stabilizing force to keep the price from slipping below $2.00.
XRP’s overall momentum has been mixed. The Liveliness indicator, which tracks the frequency of transactions for long-term holders (LTHs), shows a slight uptick. This suggests that LTHs are beginning to sell, possibly due to the recent price drop. LTHs selling during a decline is often a signal of waning confidence, potentially exacerbating the price fall.
However, since the LTH selling isn’t aggressive, its impact on XRP’s price could be limited. The support from whales, who continue to accumulate XRP, may counterbalance the selling pressure. The growing influence of whales on the price could help offset some of the negative effects of the selling activity, potentially preventing further losses.
XRP Price Needs A Bounce
XRP’s price stands at $2.12, marking a 3% decline over the past 24 hours. At this level, the altcoin is attempting to secure $2.12 as support. Only by holding above this level can XRP hope to break free from its ongoing downtrend. If whales’ accumulation remains strong, XRP may stabilize at this price point and eventually regain upward momentum.
The continued decline from mid-May persists, as XRP failed to breach the downtrend this week. However, if whale accumulation is strong enough to outweigh LTH selling, XRP has the potential to bounce off the $2.12 support and eventually break the $2.27 resistance. This would invalidate the current downtrend and suggest a potential upward move for the altcoin.
Conversely, if XRP succumbs to further LTH selling and broader market bearishness, it could experience a drop to $2.02. If this support level is lost, XRP may fall to $1.94, invalidating the bullish outlook. The next few days will be critical in determining the altcoin’s path forward.
Disclaimer
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