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XRP's 20% Plunge: Whales Accumulate $4B Amid Market Uncertainty

Coin WorldMonday, Jan 27, 2025 7:29 pm ET

1min read

XRP Faces Pressure Amid Market Correction: A Closer Look at the Altcoin's Performance

The recent volatility in the crypto market has put pressure on Ripple's XRP, with investors expressing concerns about the altcoin's performance. As the broader market grapples with uncertainty, XRP has experienced significant sell-offs, raising questions about a potential turning point for traders.

Analysts at COINOTAG have noted a staggering 44.07% surge in long liquidations, underscoring the mounting pressure on XRP. This development has led investors to question whether they should buy the dip or wait for further declines.

In a turbulent market landscape, XRP has mirrored the broader crypto market's ongoing correction. Following a week marked by significant financial shifts, including a 9% drop in Bitcoin [BTC], Ripple has shown a challenging trajectory. XRP's recent performance has seen it plunge by more than 20% from its peak, with heavy liquidation contributing to a climate of uncertainty.

Despite the sell-offs, notable whale activity has emerged, with approximately $4 billion worth of XRP accrued since the recent political changes in the U.S. This surge in accumulation could suggest that large investors anticipate a rebound, yet it raises further speculation about their next moves. As data indicates, XRP outflows from Binance have remained stable, highlighting the cautious stance of retail investors. Could this trend signal a looming distribution phase among the whales who have capitalized on the recent uptick?

As traders analyze XRP's journey, the crucial $2.30 - $2.40 support range has proven instrumental in halting declines in recent months. This zone has seen notable retail capital inflows, suggesting strong interest at this price point. However, the substantial transfer of 29.5 million XRP to Coinbase aligns closely with the previous dips, raising alarms about potential selling pressure from whale investors.

Traders must carefully monitor XRP's price action and the behavior of large holders in the coming days. Should whales decide to liquidate their positions to secure profits, this could lead to a further decline, potentially testing support levels around $2.

The volatility surrounding XRP and the broader crypto market poses both challenges and opportunities for traders. As the situation evolves, investors need to stay informed and adaptable to market conditions. Monitoring key

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