XRP, Ripple Labs’ native token, is poised for a massive price drop as it fails to hold a crucial support level. Despite this bearish outlook, long-term holders appear to be accumulating the tokens and taking advantage of the recent price drop, as reported by on-chain analytics firm Coinglass.
XRP fails to maintain bullish outlook
Before this crash, overall market sentiment seemed bullish, with XRP looking poised for a mega rally. However, the recent price drop has changed the overall market sentiment, including for XRP.
On January 2, 2024, XRP broke out of a bullish flag-and-pole price action pattern and then entered a consolidation zone, which the altcoin maintained for four trading days. However, the recent price crash has broken through XRP’s consolidation zone and signals a major price drop in the near future.
$60.7 million in XRP outflows from exchanges
Amid this price drop, whales and long-term holders appear to be accumulating the assets, as reported by the on-chain analytics firm Mint glass. Spot inflow/outflow data shows that exchanges witnessed an outflow of a significant $60.7 million worth of XRP in the last 24 hours.
In cryptocurrency, outflows refer to the movement of assets from exchanges to wallets, which is often seen as a sign of accumulation. Furthermore, the outflow may indicate a potential buying opportunity and the possibility of an upside rally.
Current price momentum
Currently, XRP is trading around $2.30 and has experienced a 4.9% price drop in the last 24 hours. During the same period, trading volume increased by 85%, indicating greater participation from traders and investors compared to the day before.