XRP, the native token of Ripple Labs, has recently faced a significant price decline as it struggles to maintain a key support level. Despite this bearish trend, there seems to be a silver lining as long-term holders are reportedly accumulating the tokens amidst the price drop, according to insights from the on-chain analytics firm Coinglass.
Previously, market sentiment for XRP appeared bullish, with the cryptocurrency showing signs of a potential rally. However, the recent price decline has shifted this outlook, raising concerns about a looming major price drop for XRP.
On January 2, 2024, XRP broke out from a bullish flag-and-pole pattern and entered a consolidation phase that lasted for four trading days. Unfortunately, the recent price crash has breached this consolidation zone, hinting at a potential downward movement in the near future.
Despite the negative price action, data from Coinglass indicates that whales and long-term holders are actively accumulating XRP. In the last 24 hours alone, exchanges have recorded an outflow of $60.7 million worth of XRP, suggesting that these holders view the current price decline as a buying opportunity.
Outflows from exchanges to wallets are often seen as a bullish sign in the cryptocurrency market, indicating accumulation and potential upward momentum. This trend could potentially pave the way for a reversal in XRP’s price trajectory.
As of now, XRP is trading around $2.30, experiencing a 4.9% decline in the past 24 hours. Despite the price drop, trading volume has surged by 85%, indicating increased participation from traders and investors.
In conclusion, while XRP may be facing a challenging period in terms of price action, the accumulation by long-term holders and whales suggests a potential turnaround in the near future. With heightened trading volume and a shift in market sentiment, it will be interesting to see how XRP’s price trajectory unfolds in the coming days.