Key Insights
- •XRP price has recently dipped as low as $1.99 in the last 24 hours.
- •This price decline coincides with significant selling activity from Ripple whales.
- •Optimism surrounding a potential XRP ETF is seen as a factor that could drive a strong recovery for the asset.
XRP Price Dynamics and Market Sentiment
XRP price has continued to experience downward pressure today, while the broader cryptocurrency market has largely remained flat. Recent XRP news indicates that the activities of Ripple whales have drawn considerable attention from traders. Despite a growing institutional interest in cryptocurrencies, these large holders appear to be reacting with panic. Among the top ten cryptocurrencies by market capitalization, only Bitcoin and Solana have managed to stay in positive territory.
The continuous inflow of capital into the Solana ETF has been credited with aiding the asset's recovery. Many market participants are now anticipating a similar rebound for XRP, given the increasing interest from prominent institutions such as Grayscale and Bitwise. However, this optimism is currently overshadowed by the ongoing dip in XRP's price, which is negatively impacting trader sentiment. With XRP's value fluctuating near the $2 mark, experts are closely monitoring key price levels to gauge potential future movements.
XRP Price Struggles as Ripple Whales Offload Holdings
XRP price has seen a decline of nearly 1% today, trading at $1.99. Its trading volume has surged by 34% to $6.13 billion. The cryptocurrency recorded a 24-hour high of $2.15 and a low of $2.03. As the asset hovers near the $2 mark, discussions among traders about its potential future trajectory have intensified. Some analysts predict a possible rebound in XRP's price, while others foresee a continuation of the bearish momentum.
Furthermore, derivative data suggests a potential further decline for XRP. Data from CoinGlass indicates that XRP Futures Open Interest has decreased by approximately 4% to $4 billion from the previous day, signaling a reduced appetite for risk among traders. The recent price retreat can also be attributed to a trend of whale selling. Ripple whales have been observed offloading their holdings, a move interpreted by some as profit-taking and by others as a sign of waning trader interest.
In a recent post on X, analyst Ali Martinez highlighted the prevailing selling pressure in the market. According to Martinez, XRP whales have sold off 190 million coins over the past two days, which may have negatively impacted trader sentiment and triggered this selling pressure.
Future Outlook for Ripple Coin
Despite the current downturn in XRP price, there remains anticipation for a potential recovery. Leading financial entities like Bitwise and Grayscale are reportedly preparing to launch XRP ETFs, following the successful debut of the Canary Capital ETF. This increasing institutional backing could potentially fuel a significant rally for XRP in the near future.
However, analyst CRYPTOWZRD has pointed out that XRP price needs to overcome the $2.75 resistance level to aim for the $3 mark.
Conversely, the expert suggests that if XRP fails to maintain the $2 support level, it could face further pullbacks, potentially reaching $1.5 or even $1. Consequently, market participants are closely observing the $2 support level for indications of XRP's future direction.