XRP, a popular cryptocurrency, has been experiencing a decline in its price over the past few days, in line with the broader market trend. However, despite this dip, XRP has managed to hold onto its critical support levels, indicating the potential for a recovery in the near future. Technical analysis of the XRP price has identified the $2.20 mark as a key level to watch moving forward, with the next major move for XRP depending on its performance at this threshold.
The recent selling pressure in the cryptocurrency market, triggered by Bitcoin’s drop below support levels, has led to significant price corrections across various digital assets, including XRP. The XRP price fell from $2.708 on December 17 to a low of $1.98 on December 20, representing a 27% decline in just three days. However, XRP has since rebounded and is now trading around $2.20, still down by 7% in the weekly timeframe. Analysts are closely monitoring XRP’s movement around the $2.20 price level to gauge its short-term bullish outlook.
Crypto analyst Ali Martinez has outlined two possible scenarios for XRP based on its performance at the $2.20 support level. Holding above this level could lead to a consolidation phase followed by another attempt at breaking the $2.70 resistance. A strong bullish momentum above $2.70 could propel XRP above $3 for the first time in years. Conversely, a break below $2.20 could trigger a quick price decline towards $1.96 before attracting fresh buying interest. Whale accumulation of XRP coins by addresses holding between 1 million and 10 million coins indicates a strong confidence in the token’s long-term potential.
On-chain data from Santiment reveals that whale addresses have accumulated an additional 80 million XRP coins since December 17, despite the recent market correction. This accumulation suggests a positive outlook for XRP’s recovery and could provide a cushion against further declines below the $2 mark. Additionally, technical analysis of the XRP price using Elliot impulse waves indicates that the recent crash below $2 might signal the end of the corrective wave, with a bullish impulse wave 3 expected to begin soon. As of the time of writing, XRP is trading at $2.27, with potential for further price movements in the coming days.
