The post XRP Faces Potential Downside Amid Weak Momentum and Whale Activity as Price Eyes $4 Resistance in February appeared on BitcoinEthereumNews.com.

XRP has experienced a decline of over 3% in the past 24 hours, with indicators suggesting a potential continued downtrend due to weakening momentum. Despite the price drop, whale activity has not shown significant accumulation, indicating hesitance among large investors to commit resources. As noted by COINOTAG, “XRP risks forming a death cross, and while support remains at $2.82, a breakthrough of $3.03 could trigger a bullish rally.” This article analyzes XRP’s recent price decline, whale activity stagnation, and key resistance levels as it navigates potential market dynamics ahead. XRP’s Market Dynamics: Analyzing Recent Trends and Price Movements Over the last 24 hours, XRP’s price has seen a significant decline of over 3%, with the Relative Strength Index (RSI) falling to 39.5, depicting a loss in bullish momentum. This drop indicates a potential for further downside movement as bearish signals appear to grow stronger. The RSI is a critical momentum indicator that traders use to gauge market conditions. It operates on a scale from 0 to 100, where values above 70 typically signal overbought conditions, and values below 30 indicate oversold market territory. XRP’s current reading below 40 suggests a lack of buying pressure, increasing the likelihood of further declines unless positive developments materialize. Stagnation in Whale Activity Raises Concerns A particularly noteworthy aspect of the current XRP market is the stagnation in whale activity. Since January 21, the number of addresses holding between 1 million to 10 million XRP has fluctuated within a narrow range of 2,095 to 2,082, currently resting at 2,083. This lack of movement among large holders may signal diminished confidence in the asset’s near-term price potential. Historically, increased whale accumulation is often a precursor to significant price hikes, as these large transactions can influence market liquidity and sentiment. If the whale count doesn’t trend upward…

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Filed under: News - @ February 1, 2025 5:15 pm