The cryptocurrency market represents a great opportunity for traders that are capable of technical analysis. XRP recently developed a strong support level, which could affect the direction of the short-term trend. As crypto analyst Ali shared, XRP is testing the support zone around the $2.15 mark. Market players want to see whether bulls can sustain this key level.

Based on technical charts, XRP has established a major support level at $2.15, coinciding with moving averages and Fibonacci retracement zone. If XRP manages to defend $2.15 and consolidates above it, then the path towards a recovery moves into the $2.40 to $2.70 range becomes more likely.

XRP is currently trading above the 8-hour 100-day Exponential Moving Average to provide a technical basis for further upside potential. However, traders are still cautious as the Relative Strength Index is still in neutral territory meaning the market could move in any direction depending on the crypto sentiment outside of the market.

XRP has been swinging between $2.20 to $2.70, while the lower bound has been hit repeatedly in the last few weeks. This phase of consolidation has formed a “coiling pattern” which is often the precursor of substantial directional moves once support or resistance level are completely broken.

On-chain data indicates that whales are increasing their activity as XRP has seen an inflow of more than $431 million to exchanges over the past few days. Whale Alert shared two large transfers; an event of approximately 92.6 million XRP ($214.3 million) was transferred to Coinbase and then a second massive transfer of 94.7 million XRP ($217.2 million) was transferred to Binance.

These whale-to-exchange flows are usually signs of potential selling pressure, as a large group of shareholders are ready to sell off positions. The timing of these transfers coincided with XRP’s reversal from the recent highs, and this has resulted in near-term distribution concerns. Most of the largest holders who hold between 100 million and 1 billion XRP increased their holdings by approximately 1.27 billion XRP in the late October period, which caused a tug of war game that has left prices in limbo.

The recent listing of the first spot XRP exchange-traded fund in the United States is a significant opportunity for institutional access. In mid-November, Canary Capital’s XRPC ETF was established, making a move that some analysts believe could be a world-changing in terms of capital flows. The initial ETF activity indicated that there is a lot of interest from investors with a high transaction volume for the first day of trading.

November is one of the most successful months in the history of XRP, with an average celebrated gain of 88 percent calculated based on historic data. This seasonal strength is combined with increasing regulatory clarity due to Ripple’s legal resolution with the SEC, which creates a more constructive atmosphere. Technical analysts emphasize immediate resistance at $2.40 – $2.43 where sellers have appeared repeatedly as the stock progresses while a breakdown below $2.08 would reveal deeper corrective zones.

The existing arrangement provides both an opportunity and a danger for traders of XRP. The consolidation of a support level of $2.15 indicates that we can anticipate a breakout to occur shortly. Risk management is still important, and low stop-losses are considered below $2.08 for long positions. The combination of technical support, whale accumulation, and up-to-date institutional ETF launches will be crucial in the next phase of the XRP coin. These factors will determine whether the asset enters a sustained rally or will continue to sort out before its next breakout.

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