XRP, the native cryptocurrency of Ripple Labs, is currently facing a significant downturn as it struggles to maintain a critical support level. Despite the bearish market sentiment, there is a noteworthy trend among long-term holders who are seizing the opportunity presented by the recent price drop. This insight comes from the on-chain analytics firm, Coinglass.
XRP Price Action and Upcoming Levels
Prior to the recent downturn, the market sentiment surrounding XRP was bullish, suggesting a potential major rally in the making. However, the tide has turned, with the latest price decline impacting the overall market sentiment, including XRP’s prospects.
On January 2, 2024, XRP experienced a breakout from a bullish flag-and-pole price action pattern. This breakout led the altcoin into a consolidation phase, which it maintained for four trading days. Unfortunately, the subsequent price crash has disrupted XRP’s consolidation zone, pointing towards a potential significant price drop in the near future.
$60.7M in XRP Outflow from Exchanges
In the midst of this downward price movement, there is a visible trend of accumulation among whales and long-term holders. Coinglass reports indicate that a substantial outflow of $60.7 million worth of XRP has been observed from exchanges in the past 24 hours.
In the cryptocurrency world, outflows are often interpreted as the transfer of assets from exchanges to private wallets, signaling accumulation. This behavior may also suggest a potential buying opportunity, with the possibility of an upward price rally in the horizon.
Current Price Momentum
At present, XRP is trading around $2.30, having experienced a decline of 4.9% over the last 24 hours. In this same timeframe, trading volume has surged by an impressive 85%, indicating heightened activity and interest from traders and investors compared to the day before.
Overall, the current market dynamics reflect a complex interplay of bearish sentiment and strategic accumulation by long-term holders. As XRP navigates through these challenging times, market participants will be closely watching for signs of a potential recovery or further declines.
