- XRP’s recovery showed signs of resilience, with buyers stepping in despite decline in whale accumulation
- Market sentiment and hike in trading volume seemed to be supporting XRP
XRP’s price action has been heavily influenced by whale activity in recent weeks. In fact, following a period of declining whale accumulation, XRP suffered a notable price drop. However, it staged a major recovery over the last 12 hours or so. At the time of writing, it was up 8% on the charts.
This shift raises critical questions – How much has it lost since whale activity declined, and what factors could push the price aside from whale movements?
Whale accumulation and XRP’s price drop
On-chain data revealed that whale activity had been instrumental in driving XRP’s previous price surge. Large holders, particularly those holding between 100 million and 1 billion XRP, significantly accumulated the asset before the rally.
However, as accumulation slowed, its price followed suit, retracing from its previous highs.
From its peak, XRP lost more than 15% of its value by dropping to a low of $2.04 – Aligning with the decline in whale holdings. This southbound movement confirmed the importance of institutional and whale interest in sustaining the altcoin’s price momentum.
Source: Santiment
However, over the last 12 hours, the price registered yet another uptrend. Owing to this uptrend, whales have now resumed accumulation – A sign that the price influenced whale accumulation this time.
XRP’s 12-hour recovery – A sign of strength?
Despite the decline in whale activity, XRP managed to recover in the last 12 hours or so, climbing back to $2.21 at press time. This move suggested that other market forces have been stepping in to support the price.
The latest whale accumulation data hinted at some returning interest from large holders, but not at the scale seen in previous rallies.
Source: TradingView
Other technical indicators also highlighted XRP’s current strength. For instance – The Relative Strength Index [RSI] seemed to be recovering from oversold conditions, showing increased buying interest.
Meanwhile, the 50-day and 200-day moving averages suggested that it is still on a broader uptrend, despite the recent bout of correction.
Beyond whale activity – What could drive the price?
While whale accumulation has been a key driver, its recovery points to additional factors influencing price action. Broader crypto market sentiment is stabilizing after recent volatility, allowing altcoins like XRP to regain lost ground.
Higher trading activity alluded to retail and institutional investors re-entering the market too, preventing further downside. Its ability to stay above $2 suggests strong buyer interest at lower levels, reducing the risk of another major breakdown.
Any positive news related to adoption or XRP Ledger improvements could further boost investor confidence.
Can XRP sustain its recovery?
XRP’s recovery over the last 12 hours indicated that its price action is not solely dictated by whale accumulation. While large holders play a significant role, trading volume, market sentiment, and key technical levels also contribute to price movements.
If XRP continues to hold above $2.10 and sees renewed whale interest, a further rally towards previous highs could be in play.
However, if whale activity continues to fall, it could struggle to maintain its recovery. The next few days will be crucial in determining whether it builds on its momentum or faces another round of sell-offs.
