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XRP has been trade on a decline the past few days next to the wider one cryptocurrency market. However, despite this lull, XRP price has managed to maintain its critical support levels and is currently positioning itself for a possible recovery.
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Interestingly, technical analysis shows that the $2.20 mark is an important level to watch for XRP going forward. This was noted in an analysis by popular crypto analyst Ali Martinez, who highlighted that XRP’s next big move could depend on the outcome at this threshold.
Key levels to watch: $2.20 support and $2.70 resistance
The cryptocurrency market has experienced significant selling pressure since December 17 led by Bitcoin breaks below the support levelleading to remarkable price corrections for various cryptocurrencies. XRP in particular saw its price drop from $2.708 on December 17 to $1.98 on December 20. This represented a 27% increase in three days.
After reaching $1.98, the XRP price recovered and regained the $2 price level. As it stands, XRP is now trading around $2.2, although it is still down 7% in the weekly time frame.
XRP’s move around the $2.2 price level has caught the attention of crypto analyst Ali Martinez, who suggested two ways the cryptocurrency could go from here. According to Ali MartínezXRP’s ability to hold above the USD 2.20 support is crucial to its near-term bullish outlook.
If this level remains intact, the token could enter a consolidation phase, but a new attempt at resistance at $2.70 remains in play. From here, strong bullish momentum above $2.7 could as well send the cryptocurrency above $3 for the first time in years. On the other hand, a break below $2.20 could lead to another rapid decline in the XRP price towards $1.96 before new buying interest emerges.
Image From X: ali_charts
Whale Accumulation Rises Amid Crypto Market Correction
On a chain data from Santiment suggests that XRP has captured the attention of whales during this recent recession. Wallets holding between 1 million and 10 million XRP coins have accumulated an additional 80 million XRP since December 17, indicating strong confidence in the token’s long-term potential among whale addresses. This accumulation could provide a cushion against further declines below $2 and pave the way for an eventual recovery.
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Complementing the bullish outlook, the technical analysis of XRP price using Elliot impulse waves suggests that the recent crash below $2 could be the end of the second impulse wave, which is a corrective wave. With this in mind, bullish impulse wave 3 is expected to start soon.
At the time of writing, XRP is trading at $2.27.
Featured image from Tech Xplore, chart from TradingView
