Is XRP heading to $2.35 again after whales bought the dip?

• XRP has declined by 2.82% over the past 24 hours.
• Ripples whales buy 110 million XRP tokens worth $242 million.

Over the past 24 hours, the crypto market has experienced strong downward pressure.  With most altcoins declining following BTC’s drop to $95k, XRP was not spared. Over this period, Ripple’s [XRP] has experienced a sharp decline, hitting a low of $2.15.

This drop has created a buying opportunity among investors, especially whales. As such, whales have turned to buying the dip.

Ripple whales buy the dip

In his analysis, Ali Martinez observed that Ripple’s whales have turned to accumulating XRP following the market dip.

Source: X

According to him, Ripple Whales have bought another 110 million XRP tokens worth $242 million. When large holders buy, it shows their confidence in the XRP market’s prospects.

We can see the surge in buying activity over the past two days, evidenced by the Taker buy-sell ratio. This ratio has reversed from a sustained decline of 0.91 to 0.93, suggesting that buyers have entered the market following a rise in selling pressure over the previous days.

Source: CryptoQuant

Such a shift from higher selling pressure to increased buying suggests that investors are optimistic and view the current XRP rates as perfect prices to re-enter the market.

Impact on XRP’s price charts?

Usually, increased buying pressure, especially among large holders positively impacts asset prices.

However, XRP was experiencing a strong downward pressure. At press time, XRP was trading at $2.28. This marked a 2.82 decline on daily charts. On weekly charts, the altcoin has declined by 2.72%.

Source: CryptoQuant

The recent dip seems to have caused panic selling. The surge in the exchange supply ratio reflects a negative sentiment among holders. It has surged to 0.029, signaling increased inflow into exchanges.

Investors are transferring more tokens to exchanges than withdrawing. This market behavior suggests that investors are either selling or preparing to sell.

Source: CryptoQuant

The reduction in market participation is notable, with active addresses declining from 59,561 to 44.1k. Such a decrease risks leaving the altcoin overvalued, leading to a decline in its price charts.

Simply put, although whales are continually buying, bears are currently strong, and the bullish momentum is diminishing while the downward pressure is strengthening.

Read XRP’s Price Prediction 2024–2025

If this sentiment holds, we could see XRP drop further, especially in the short term. As such, the altcoin could drop to $2.20. However, with increased buying from whales, buying pressure could see XRP reclaim $2.35.