XRP has recovered briefly recently, but cryptocurrencies are facing significant challenges.
The overall market sentiment is still bearish, and price movements are under pressure due to large-scale selling by whales. This selling activity and market uncertainty suggest that the current uptrend may not be sustained.
XRP Whales Changing Positions
Whales, or major XRP holders, have been showing a bearish trend despite the recent price increase. According to recent data, addresses holding between 10 million and 100 million XRP have sold over 220 million XRP, or about $50 million, in the past 6 days.
This large-scale selling indicates that major investors no longer believe in the possibility of a short-term recovery. Their actions are particularly important as they have a significant impact on the market. Their decision to exit the market early reflects a lack of confidence that prices will continue to rise, which could increase the downward pressure on XRP going forward.
The overall market conditions are also contributing to the price difficulties of XRP. Technical indicators such as the MACD (Moving Average Convergence Divergence) suggest that cryptocurrencies are still facing a bearish momentum.
The MACD histogram has recently turned positive, but the MACD line has not crossed the signal line, indicating that the momentum has not fully reversed. The lack of clear positive momentum signals in the MACD, despite the brief recovery, suggests that XRP may struggle to maintain its gains.
XRP Price Seeking Support
XRP is currently trading at $2.27, down 5% over the past 3 days. The altcoin has failed to maintain the $2.33 support level and is now approaching the next important support at $2.14. If the current trend continues, XRP is likely to test this lower support level in the coming days, which could offset some of its recent gains and cause further delays in its recovery.
The persistent selling pressure from whales and the bearish momentum indicators strengthen the possibility of further declines. If XRP fails to recover the $2.33 support level, the price could drop to $2.14, which could impact investor confidence.
However, if XRP can recover the $2.33 support level, the altcoin may attempt to reverse the trend and recover some of its recent 22% losses. If this occurs, XRP could target $2.60, which could invalidate the bearish narrative and provide hope for sustained upward momentum.
