The cryptocurrency market is recovering from a sharp downturn, with Bitcoin (BTC) rebounding from its recent low of $97,795 to $105,071.67. This decline coincided with a broader financial market pullback, potentially influenced by China’s Deep Seek AI Model launch.

XRP followed a similar pattern, dropping to $2,66 before bouncing back over 5% to $3,11. This recovery was largely driven by substantial whale accumulation during the dip.

Whales Seize the Opportunity

Amid market volatility, large XRP holders significantly increased their holdings. Crypto analyst @ali_charts reports that whales acquired 120 million XRP in the last 24 hours, valued at approximately $375 million. This influx of capital signals growing confidence in XRP’s long-term potential.

Technical Outlook: Will XRP Break Out?

On the 4-hour chart, XRP rebounded from the $2,66 level, aligning with the 200SMA — a historically strong support level. Now trading at $3,11, the token is approaching a key descending trendline that has triggered breakouts in the past.

Additionally, XRP is testing the 50SMA, a dynamic resistance level. A decisive move above this zone could push XRP toward the $3,38 resistance, potentially igniting a sustained rally. Failure to break through may result in short-term consolidation before the next move.

With whale accumulation and critical resistance levels in focus, XRP’s next steps could define its short-term trajectory.