XRP, the native token of Ripple Labs, is poised for a massive price decline as it fails to hold a crucial support level. Despite this bearish outlook, long-term holders appear to be accumulating the tokens and seem to be taking advantage of the recent price decline, as reported by the on-chain analytics firm Coinglass.
XRP Fails to Hold Bullish Outlook
Before this crash, the overall market sentiment appeared bullish, with XRP seeming poised for a mega rally. However, the recent price decline has shifted the overall market sentiment, including for XRP.
On January 2, 2024, XRP broke out from a bullish flag-and-pole price action pattern and subsequently moved into a consolidation zone, which the altcoin maintained for four trading days. However, the recent price crash has breached XRP’s consolidation zone and suggests a major price decline in the near future.
$60.7M in XRP Outflow from Exchanges
Amid this price decline, whales and long-term holders appear to be accumulating the asset, as reported by the on-chain analytics firm Coinglass. Data from spot inflow/outflow reveals that exchanges have witnessed an outflow of a significant $60.7 million worth of XRP in the past 24 hours.
In cryptocurrency, outflow refers to the movement of assets from exchanges to wallets, which is often seen as a sign of accumulation. Additionally, outflows may indicate a potential buying opportunity and the possibility of an upside rally.
Current Price Momentum
Currently, XRP is trading near $2.30 and has experienced a price decline of 4.9% in the past 24 hours. During the same period, its trading volume surged by 85%, indicating heightened participation from traders and investors compared to the previous day.