Key Points
- XRP shows resilience against deeper pullback with strong whale support, suggesting a healthy retracement.
- Large “unknown wallets” holding substantial XRP amounts have been either unloading their positions or aggressively adding more since December.
XRP’s Resilience Amid Market Uncertainty
XRP stands at a crucial crossroads as 2024 draws to a close. With the altcoin market poised to ride Bitcoin’s momentum and break new psychological barriers in 2025, now could be the time to act if you’re bullish on XRP and want to see it outpace its rivals.
Since the start of December, large “unknown wallets” holding significant XRP amounts have either unloaded their positions or aggressively added more. This activity has already impacted XRP’s price, leaving it in a state of uncertainty as it braces for its next big move.
Strong Support Base for XRP
Roughly ten days ago, XRP nearly breached the critical psychological threshold of $3, driven by a remarkable 19% single-day surge. However, currently, XRP is trading at $2.30.
This dip is part of a broader trend, as many cryptocurrencies are in the red. Investors are weighing their options – whether to trim their holdings or seize the opportunity of lower prices to buy more.
Ripple is not an exception. Its 1-day price chart shows bulls working hard to fend off a deeper pullback, while bears remain steadfast. For HODLers, the continued support from whales offers a much-needed sense of security.
This support forms a strong base for XRP to rebound when the market turns bullish again. The timing of this shift is likely tied to the performance of Bitcoin or the upcoming FOMC meeting, where investors are betting on a 25 basis points rate cut.
The fact that big wallets are accumulating XRP adds weight to this trend. But will it be enough to push XRP over the edge?
Recent Correction Likely Tied to External Factors
Among the top 10 altcoins, XRP and Cardano [ADA] have been hit hardest by the current market volatility. They share a strikingly similar price pattern. Both coins capitalized on the “Trump pump,” breaking through psychological barriers with triple-digit monthly gains.
However, with such rapid growth comes increased risk, and both coins are now more vulnerable to sharp corrections as the market adjusts. In fact, XRP and ADA have experienced some of the steepest drops in the last 24 hours – each slipping by more than 3%.
Open Interest (OI) surged to an all-time high of $4.29 billion just ten days ago, matching XRP’s peak near $2.90 for the day. Many investors went long, betting on a $3 breakout. However, with that breakout failing to materialize, the OI has since dropped to $3.33 billion, leading to around $6 million in long liquidations.
A resurgence of short positions could spark a major squeeze, especially with whale support and bullish on-chain activity behind XRP. That said, unless Bitcoin breaks through key resistance levels or a broader macroeconomic trend takes shape, your patience will likely face tests.
Until then, with strong support in place, consolidation seems like the more probable path for XRP.
