- Ripple’s XRP recently experienced a sharp dip, losing 7% after South Korea declared martial law, triggering $4 billion in profit-taking, though whales and institutional investors stepped up with significant buying activity.
- With XRP now testing the critical $2.58 resistance level, it could reach new all-time highs if momentum continues, but overbought signals suggest caution is needed.
Ripple’s XRP has been at the forefront of crypto market headlines, recently experiencing a rollercoaster of profit-taking and recovery. In just three days, over $4 billion in realized profits swept through the XRP market, driven by intensified whale activity and external geopolitical tensions.
The South Korea Effect: XRP Dips Under Pressure
The rally took a hit when South Korean President Yoon declared martial law, triggering panic among investors. This geopolitical development resulted in a temporary 7% decline, with XRP prices dipping to $1.89 on prominent Korean exchanges like Upbit and Bithumb. These platforms, holding significant XRP reserves, temporarily halted trading, exacerbating the drop.
South Korea’s high concentration of XRP holders amplified the sell-off. However, a recovery wave soon followed, fueled by increased trading volumes that reached $44.5 billion in 24 hours. XRP was second only to Bitcoin and USDT in market activity during this period, signaling robust buying pressure despite the sell-off.
Whales Keep the Faith
Even as investors cashed in profits, whales — those holding between 1 million and 10 million XRP — doubled down. According to Austin Reid of FalconX, institutional buyers played a pivotal role in stabilizing the market. “We’ve seen 10x growth in volume at FalconX between the first and second halves of Q4. This isn’t just retail action — institutions are driving the momentum,” Reid shared.
Data from Santiment and CryptoQuant showed whale activity reaching levels unseen since XRP’s inception. This accumulation trend coincided with $95 million in net inflows into Ripple investment products, the highest weekly figure on record, according to CoinShares.
The Road to a New All-Time High?
Currently, XRP is flirting with the critical $2.58 resistance level. Surpassing this point could pave the way for a rally toward $3.57, setting a new all-time high. However, caution is warranted. The Relative Strength Index (RSI) indicates overbought conditions, suggesting a potential correction.
If XRP fails to hold above $1.96, it risks invalidating its bullish trajectory. Still, with institutional backing and whale confidence, the remittance-based token shows promise of a resilient recovery.
As the market watches closely, XRP stands at a crossroads, embodying both the volatility and potential of the crypto landscape. Whether it surges to new heights or retraces remains to be seen, but its underlying momentum is undeniable.
