XRP could rebound toward $1.30 after reaching the lower boundary of a descending channel, with whale accumulation providing another potential bullish signal despite the cryptocurrency’s recent decline.
The outlook, shared by crypto analyst Ali Martinez in an X post on November 8, noted that XRP is approaching a critical support zone around $1.14.
Holding this level could trigger a recovery toward the channel’s upper boundary near $1.30, representing a potential 13% gain from its current price of approximately $1.16.
Advertisement
The analyst’s four-hour chart shows XRP trading within a descending channel, signalling a sustained downtrend in which sellers remain in control.
However, as the price approaches the channel’s lower boundary near $1.14, it could support a technical rebound toward the upper boundary at $1.30. In contrast, a breakdown below support would expose the cryptocurrency to further losses.
However, a sustained break below $1.14 would weaken the bullish outlook and expose XRP to further downside.
XRP whales buying the dip
Adding to the potential recovery case, large XRP holders have continued accumulating the cryptocurrency despite its declining price.
In a separate analysis on November 7, Martinez noted that whales accumulated more than 16.46 million XRP over five days as the token declined from approximately $1.34 to $1.15.
Data from Santiment also shows an increase in the amount of XRP held by whales, with the chart indicating a rise to approximately 6.35 billion tokens by November 7.
Advertisement
The accumulation suggests that large holders are taking advantage of lower prices rather than reducing their exposure amid the market downturn.
Nevertheless, whale buying does not guarantee an immediate price recovery. XRP still needs to defend the $1.14 support level and overcome resistance within its descending channel.
XRP price analysis
By press time, XRP was trading at $1.16, down more than 5% over the past 24 hours. On the weekly timeframe, the cryptocurrency was also in the red, having declined by more than 12%.
Technically, XRP is trading significantly below its 50-day and 200-day simple moving averages (SMA) of $1.37 and $1.27, respectively, indicating sustained bearish momentum.
The 14-day relative strength index (RSI) stands at 27.57, placing the cryptocurrency in oversold territory and suggesting that selling pressure may be approaching exhaustion.
While this could create conditions for a short-term rebound, XRP needs to reclaim the $1.27 200-day SMA and subsequently the $1.37 50-day SMA to signal a stronger recovery.
Featured image via Shutterstock
