XRP has successfully maintained support at the $2.10 level following a significant price move earlier this month. After experiencing a sharp uptick in value, the market has since cooled, leading to a reset of excess leverage. In a notable technical development, XRP has formed a Golden Cross, a pattern that historically precedes price surges, prompting speculation about a possible repeat of previous highs.
Leverage Reset Creates Stable Trading Range
The derivatives market has undergone substantial changes recently. Notably, XRP experienced a rare dual liquidation event on Binance Futures. On January 5, the price surged, leading to approximately $4.4 million in short positions being liquidated as late sellers were forced to exit. This rally, however, was short-lived; on January 6, the price reversed sharply, resulting in about $5.5 million in long positions being wiped out. This series of liquidations has effectively cleared leverage from both sides, stabilizing XRP within a narrow trading range between $2.07 and $2.17. Traders are now poised for a new catalyst to drive price movement.
Whale Activity Declines Amid Institutional Interest
With leverage cleared, market focus has shifted to on-chain data and institutional signals. According to insights from CryptoQuant, whale investors continue to dominate XRP inflows to Binance, representing roughly 60% of total activity. In contrast, retail traders account for the remaining share. Notably, whale activity has been gradually declining since mid-December, suggesting that large holders might be stepping back after extensive engagement during the recent rally. This shift may allow the market to cool and stabilize further.
Institutional interest in XRP remains robust, providing critical support. Since their launch, spot XRP exchange-traded funds (ETFs) have attracted nearly $1.49 billion in inflows, despite a $40.8 million outflow on January 7 amid the recent price dip. This indicates that while short-term sentiment may fluctuate, long-term interest in XRP remains strong.
Technical analysts are closely monitoring XRP’s chart for signs of strength. Data from ChartNerd indicates that XRP has printed a Golden Cross on the 5-day moving average convergence divergence (MACD), with the histogram now entering positive territory. The last occurrence of this signal was in July, just prior to XRP reaching new all-time highs. If historical trends hold, XRP could soon approach its all-time high of $3.68.
As the market stabilizes, traders and investors alike will be watching closely for developments that could catalyze further price movements. The combination of reduced leverage, declining whale activity, and sustained institutional interest presents a complex but potentially promising landscape for XRP in the coming weeks.
