Date: Fri, February 7, 2025 | 05:02 AM GMT
In the cryptocurrency market, major altcoins have been struggling to hold their ground since the November rally. Many altcoins have undergone a steep correction, largely influenced by the rise in BTC dominance and recent events like the DeepSeek launch and tariff-related uncertainty caused by Donald Trump’s latest statements.
Amid this, XRP has also faced a decline of 23% over the last seven days and is currently trading at $2.35. However, despite the ongoing correction, whales are making significant moves.
Whale Accumulation
Whales are taking advantage of the dip by accumulating large amounts of XRP. According to crypto analyst Ali, whales have recently purchased 520 million XRP, which is worth approximately $1.22 billion at the current price levels.
This large-scale accumulation suggests that major investors might be betting on a potential price rebound in the short term.
Could This Short-Term Breakout Lead to a Recovery?
On the 1-hour timeframe, XRP has recovered from its recent low of $1.72, bouncing back to $2.35 and currently trading near the upper boundary of a falling wedge pattern.
The 30-SMA (Simple Moving Average) is acting as a dynamic resistance, preventing an immediate breakout. If XRP successfully breaks above the wedge pattern and surpasses the 30-SMA, it could initiate a short-term recovery, with $2.43 and $2.52 as the next resistance levels.
However, if XRP fails to break out, it might retrace back to its lower support at around $2.30, potentially leading to further downside movement.
Final Thoughts
XRP’s technical setup suggests that a breakout from the falling wedge could lead to a price recovery, backed by strong whale accumulation. However, a failure to break resistance may keep the price in consolidation or push it back to lower support. Traders should keep an eye on the $2.30-$2.52 range in the coming hours to gauge XRP’s next move.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.