XRP is struggling to break out of this week's downtrend, and altcoins continue to decline. Despite efforts to gain upward momentum, it has faced several challenges, and the price remains highly volatile.
XRP's fate may now depend on the actions of whales, who could help maintain the price above the critical $2.00 level.
XRP Investors Choose Accumulation
In recent days, XRP whales have taken advantage of the current low prices. Within just 48 hours, addresses holding between 100 million and 1 billion XRP have accumulated nearly 900 million XRP, worth over $1.9 billion.
This massive accumulation indicates a strong belief among these large holders that XRP's price will eventually rise. Their buying power could prevent further decline and help stabilize the price from falling below $2.00.
XRP's overall momentum is mixed. The Liveliness indicator, which tracks long-term holders' (LTH) trading frequency, shows a slight increase. This suggests that LTHs have started selling due to recent price drops. LTHs selling during a decline often indicates weakening confidence, which could exacerbate price declines.
However, the LTHs' selling is not aggressive, so its impact on XRP's price may be limited. The continued accumulation by whales could offset selling pressure. As the whales' influence on price grows, they may partially mitigate the negative effects of selling activity and prevent further losses.
XRP Price Rebound Needed
XRP's price is at $2.12, down 3% in the last 24 hours. At this level, the altcoin is attempting to secure $2.12 as a support line. It must maintain this level to break out of the continuous decline. If whale accumulation remains strong, XRP could stabilize at this price point and eventually recover its upward momentum.
The continuous decline since mid-May continues, and XRP has not broken through this week's downtrend. However, if whale accumulation is strong enough to offset LTH selling, XRP could rebound from the $2.12 support line and potentially break through the $2.27 resistance level. This would invalidate the current downtrend and suggest a potential upward movement for the altcoin.
Conversely, if XRP succumbs to additional LTH selling and broader market weakness, it could drop to $2.02. If this support line breaks, XRP might fall to $1.94, invalidating its upward prospects. The next few days will be crucial in determining the altcoin's future path.
