XRP’s recent correction appears to be driven by external volatility, making it more of a temporary blip than a lasting trend.
- XRP is holding firm against a deeper pullback, bolstered by strong whale support. This resilience suggests that the current correction is part of a “healthy” retracement.
Ripple [XRP] finds itself at a crucial crossroads as 2024 draws to a close. With the altcoin market set to ride Bitcoin’s momentum and break new psychological barriers in 2025, now might be the time to take action if you’re “long” on XRP and want to see it outpace its rivals – just like the whales are doing.
Since December kicked off, large ““unknown wallets” holding significant XRP amounts have either been unloading their positions or aggressively adding more.
This back-and-forth has already made a noticeable impact on XRP’s price – leaving it in a state of uncertainty as it braces for its next big move – whether up or down.
XRP has a strong support base
Ten days ago, XRP came nearly close to breaching the critical psychological threshold of $3, fueled by an impressive 19% single-day surge. However, as of now, XRP is trading at $2.30.
This dip is part of a broader trend, as many cryptocurrencies are in the red, and investors are weighing their options – should they trim their holdings or take advantage of the lower prices to buy more?
Ripple is no exception. Its 1-day price chart reveals 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 creates a strong base for XRP to rebound when the market shifts bullish once again.
And when will that happen? It’s likely tied to the performance of Bitcoin, the coin with a trillion-dollar market cap, or the upcoming FOMC meeting, where investors are betting on a 25 basis points rate cut.
Either way, this strong foundation might be exactly what XRP needs to set its sights on the $3 milestone in the short term. The fact that big wallets are accumulating XRP adds weight to this trend, but will it be enough to push XRP over the edge?
The recent correction is likely tied to external factors
Among the top 10 altcoins, two have been hit hardest by the current market volatility: XRP and Cardano [ADA].
What’s fascinating is the strikingly similar price pattern they share. Both coins capitalized on the “Trump pump,” breaking through psychological barriers with triple-digit monthly gains.
But 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%.
While this may seem bearish, it’s clear that external factors likely caused the dip. On the internal front, XRP continues to show strong bullish signals across several key metrics.
This suggests the story is far from over, and a powerful rebound is still very much on the cards – despite some bumps in the derivatives market, particularly with Open Interest (OI) showing some volatility.
Source : Coinglass
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 1% increase from the previous day.
But here’s where things get interesting: a resurgence of short positions could spark a major squeeze, especially with whale support and bullish on-chain activity behind XRP.
That said, your patience will likely face tests unless Bitcoin breaks through key resistance levels or a broader macroeconomic trend takes shape.
Until then, with strong support in place, consolidation seems like the more probable path for XRP.
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