XRP, Ripple Labs' native token, faces potential downward pressure after losing a critical support level. Despite the bearish trend, on-chain data reveals long-term holders are aggressively accumulating the token, capitalizing on the recent price drop.
Market Sentiment Shifts Bearish
Initial bullish momentum—marked by a breakout from a flag-and-pole pattern on January 2, 2024—has reversed sharply. XRP’s four-day consolidation phase collapsed, signaling further declines ahead.
Whales Seize the Opportunity
Analytics from Coinglass highlight a $60.7 million XRP outflow from exchanges in 24 hours, suggesting institutional and retail accumulation. Outflows typically indicate:
- Reduced sell pressure as assets move to cold storage.
- Potential price recovery as holders anticipate future demand.
👉 Why XRP outflows matter for your portfolio
Price Action & Volume Trends
- Current Price: ~$2.30 (4.9% daily drop).
- Trading Volume: Up 85%, reflecting heightened market activity.
Key Takeaways
- Monitor support levels—further breaks could trigger steeper declines.
- Accumulation phase may precede a rally if outflows persist.
- Volume spikes often indicate trend confirmation.
FAQ Section
Q: Should I buy XRP now?
A: Depends on risk tolerance. Accumulation by whales suggests confidence, but short-term volatility remains high.
Q: What does exchange outflow mean?
A: It signals reduced liquid supply, often a precursor to price increases if demand rises.
Q: How reliable is Coinglass data?
A: Coinglass is a reputable analytics platform, but cross-verify with multiple sources.
👉 Master crypto accumulation strategies
### Keywords
- XRP
- Ripple Labs
- Exchange Outflow
- Cryptocurrency Accumulation
- Price Support
- Coinglass Data
- Trading Volume