Ripple’s XRP has shown resilience in the face of a market downturn, as it oscillates around the key $0.60 mark. Despite slipping below this level in recent sessions, the digital asset has managed to reclaim its position above it, though the bearish pressure persists. The $0.60 level has become a battleground for bulls and bears alike, with repeated breaches followed by recoveries characterizing the recent price action.
Ripple’s XRP is experiencing a price correction, now trading around $0.6011. The recent downtrend has led to an 8% decrease over the last week, reflecting broader market adjustments. This correction follows a season of significant gains across the cryptocurrency market, with Bitcoin reaching an all-time high in March.
The price dip below the crucial level of $0.60 is particularly impactful for XRP, as it represents not just a psychological threshold but also a possible pivot point for traders. XRP’s inability to capitalize on the bullish trend from the last quarter has seen XRP price increase by 2% only in Q1 2024, starkly underperforming against the market’s average surge of 63%.
XRP’s Struggle Against Bearish Winds, Falling Below $0.60
XRP/USD price analysis reveals that XRP has faced tough resistance beneath the $0.60 mark, struggling to maintain bullish momentum. Currently enclosed within a narrow range, XRP shows critical support and resistance levels at $0.5670 and $0.6686, respectively. The recent downward trend is supported by a bearish Awesome Oscillator with red bars extending below the baseline, and a Relative Strength Index that has fallen past the 50 level, indicating a potential increase in selling pressure.
There’s speculation that XRP may need to test the lower support at $0.5386 to gather strength for any upward movement. A confirmed break below $0.60 may see the price seeking the January 31 low of $0.4853. Conversely, climbing above the $0.6227 threshold, the 50% Fibonacci level of the ascent from $0.4853 to the March peak of $0.7440, could negate the bearish outlook and set XRP on a recovery path towards the resistance at $0.6686, eyeing the year-to-date high.
Whales’ Distribution Trend Exerts Downward Pressure
In the recent landscape of cryptocurrency trading, XRP has faced a significant headwind due to a noticeable distribution campaign by larger investors. Insights from Santiment highlight that various tiers of XRP holders, ranging from those holding 10,000 to as many as 10,000,000 tokens, have consistently offloaded their XRP holdings since the beginning of the year.
XRP Addresses | Santiment
The impact of this distribution is evident in the reduction of XRP tokens across three distinct holder categories. The balance for addresses with 10,000 to 100,000 XRP has decreased from 6.86 billion to 6.77 billion. Addresses in possession of 100,000 to 1,000,000 tokens have seen their collective balance dip from 6.72 billion to 6.63 billion XRP. Most notably, whale addresses holding between 1,000,000 and 10,000,000 tokens have witnessed their balance shrink from 3.72 billion to 3.63 billion.
This trend of liquidation among larger holders has inevitably contributed to the bearish sentiment around XRP, pushing the price below the pivotal $0.60 mark, and making it an outlier in what some may perceive as a broader bull market. This sell-off could be a strategic shift as these investors potentially look to diversify into other assets or take profits in anticipation of different market movements.
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