Massive XRP accumulation held back by Bitcoin has set the tone this week. Investors have withdrawn 500 million XRP, valued at over $1.25 billion, from exchanges. However, according to analyzed market data, this strong buying is not reflected in the price. The digital asset remains under pressure from Bitcoin’s weakness.
The balance of XRP on exchange platforms has fallen to five-year lows. This movement indicates strong long-term investor confidence. The recent withdrawal of 500 million XRP is one of the most significant recorded. Despite this bullish demand signal, the price is struggling to hold. Currently, the asset is trading at $2.34, very close to a key support level. The lack of momentum is due to external factors.
The main challenge for XRP is its high correlation with Bitcoin. Market data places this correlation at 0.82. This high dependency means that XRP follows the leading asset’s trend. When Bitcoin shows weakness or falls, it drags XRP down with it. Therefore, the massive accumulation by investors is insufficient to counter the general market selling pressure. This scenario highlights a frustration for altcoin holders.
Will XRP Lose the $2.27 Support?
Analysts are closely monitoring crucial technical levels. The price of XRP sits just above the $2.35 support. A drop below the $2.27 level could increase bearish pressure. This move would expose the asset to further declines, potentially towards $2.13 or even $2.00. This negative outlook would affect investor confidence. The crypto market economy remains fragile. However, if accumulation manages to boost the price, there is a bullish path. Breaking the $2.54 resistance would invalidate the bearish outlook. The next target in that case would be $2.64.
The current XRP accumulation held back by Bitcoin presents a dilemma. Investors are buying aggressively, but the market is not following. XRP’s short-term fate seems tied to Bitcoin’s behavior. BTC stabilization is necessary for XRP to capitalize on its strong demand. Traders must watch if XRP can hold the critical $2.27 support. The balance between strong accumulation and Bitcoin’s weakness will define the trend.
