XRP, the native token of Ripple Labs, is facing a critical juncture as it struggles to maintain a key support level. Despite the bearish outlook, long-term holders are taking advantage of the recent price decline and accumulating the tokens, as reported by the on-chain analytics firm Coinglass.
XRP Price Action and Key Levels
Leading up to the recent crash, market sentiment for XRP was bullish, with the cryptocurrency appearing poised for a significant rally. However, the recent price decline has changed the overall market sentiment for XRP.
On January 2, 2024, XRP broke out from a bullish flag-and-pole price action pattern and entered a consolidation zone, which it held for four trading days. However, the recent price crash has breached XRP’s consolidation zone, signaling a potential major price decline in the near future.
$60.7M in XRP Outflow from Exchanges
Despite the price decline, whales and long-term holders are accumulating XRP, with exchanges witnessing an outflow of $60.7 million worth of XRP in the past 24 hours, according to Coinglass. This outflow of assets from exchanges to wallets is often interpreted as a sign of accumulation, suggesting a potential buying opportunity and the possibility of an upside rally.
Current Price Momentum
At the time of writing, XRP is trading near $2.30, experiencing a 4.9% decline in the past 24 hours. However, trading volume has surged by 85% during the same period, indicating increased participation from traders and investors compared to the previous day.
In conclusion, XRP is facing a crucial moment as it grapples with a key support level. While the short-term outlook may be bearish, the accumulation by long-term holders and whales suggests a potential turnaround in the future. Traders and investors should closely monitor price action and key levels to capitalize on potential buying opportunities in the market.