XRP has found itself under increased pressure in recent weeks, and as the price continues to struggle, the $2.40 support level is now facing a critical test. After an impressive 8% price surge, XRP’s rally appears fragile, particularly with Bitcoin’s market dominance on the rise and retail FOMO (fear of missing out) seemingly absent. While whales have been actively accumulating XRP, the lack of strong momentum from retail traders raises concerns over whether XRP can maintain its current support or face further declines.
The Role of Whale Activity in XRP’s Price Surge
In the last few days, whale investors have played a crucial role in XRP’s price movement, snapping up over 60 million XRP tokens in just 24 hours during a dip to the $2.40 mark. This large-scale buying activity helped to provide some support for XRP, pushing the price up by 8%. Despite this, the price chart has shown a series of three consecutive red candlesticks, signaling that bearish sentiment is still prevalent in the market.
XRP’s recent surge could have been fueled by these whale purchases, but this buying pressure may not be enough to maintain a strong upward trajectory. Many traders are now questioning whether this rally can be sustained or whether the token will experience another pullback. XRP’s ability to stay above $2.40 is crucial, as this level has historically been a key point for price rebounds. If the support level holds, XRP could see another attempt to break through resistance and target higher price ranges, like $3.
Bitcoin’s Comeback and Market Shifts
While XRP has seen some price action, Bitcoin’s resurgence is another factor that cannot be overlooked. Bitcoin’s dominance has recently increased by 1.01%, pushing it closer to 61.20%. This indicates that investors are once again shifting their focus back to Bitcoin as the leading asset in the cryptocurrency market. In contrast, altcoins like XRP have started to cool off as Bitcoin regains its position as the dominant player.
This shift in attention is particularly important because XRP’s price movements are often influenced by the broader trends in the crypto market. When Bitcoin strengthens, it tends to draw capital away from altcoins, leading to lower demand and price stagnation for tokens like XRP. Therefore, with Bitcoin’s dominance on the rise, XRP’s support at $2.40 could face increased pressure from a broader market shift.
The Decline in Retail Activity and Lack of FOMO
One of the most notable changes in the market is the significant drop in active accounts on the XRP Ledger. Since its peak of 109,000 active addresses during the election period, active XRP accounts have fallen by a staggering 76%. This sharp decline in activity suggests that many retail investors have cashed out their holdings, taking profits from XRP’s previous rally to $3.40.
Retail FOMO, which was once a driving force behind XRP’s gains, seems to have faded. Without the enthusiasm of smaller investors, the token lacks the buying momentum needed to push it past key resistance levels. This leaves XRP heavily reliant on whale support, which has been notably absent in recent weeks. Unlike January, when whales were aggressively accumulating XRP, this month has seen little major accumulation, contributing to the uncertainty surrounding the altcoin’s future price action.
Will XRP Hold $2.40?
XRP’s ability to defend its $2.40 support level will be a key factor in determining its short-term outlook. The coming days will likely be crucial as Bitcoin’s dominance continues to rise and retail interest remains subdued. If the support at $2.40 holds and whales continue to show interest, XRP could see another price rally back toward the $3 mark. However, if the price breaks below $2.40, XRP could face a deeper correction, with the potential for further downside.
In conclusion, XRP’s market is currently at a crossroads. While whale activity has provided some support, the absence of strong retail participation and Bitcoin’s resurgence in dominance have created an uncertain environment. The $2.40 support level will be the key to determining whether XRP can maintain its bullish potential or whether it will succumb to further market pressures. Investors will need to closely monitor XRP’s price action in the coming days to assess the viability of its next major move.
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