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XRP Whales Accumulate $4B Amidst Market Uncertainty

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

1min read

XRP, the native cryptocurrency of Ripple, has been under pressure in recent weeks, with the broader crypto market experiencing a correction. The altcoin has seen significant sell-offs, with a staggering 44.07% surge in long liquidations, as noted by COINOTAG analysts. This has raised concerns among investors about a potential turning point for traders.

In the face of market uncertainty, 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. Investors are now faced with crucial questions: should they buy the dip or wait for further declines?

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 levels and whale movements will be essential in determining the next steps in XRP's journey.

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