XRP, the native token of the Ripple network, has demonstrated impressive resilience in the face of recent volatility, surging by 8% over the last 12 hours. This upward movement has raised significant questions about the forces behind XRP’s price recovery. While whale activity has played a pivotal role in the past, the recent shift suggests that other factors may be at play.

After a decline in whale accumulation, XRP’s price took a hit, dropping by more than 15% from its previous highs. However, the recent 8% recovery has highlighted the coin’s strength, signaling that the cryptocurrency market may be stabilizing, and other forces, aside from whales, might be influencing XRP’s price action.

Whale Accumulation and XRP’s Price Decline

For several weeks, XRP’s price movements have been closely tied to the buying behavior of large holders, commonly known as “whales.” Whale accumulation has been identified as one of the primary catalysts behind XRP’s recent price surge. These large holders, particularly those owning between 100 million and 1 billion XRP, have been stockpiling the asset in substantial quantities, which contributed to the significant rallies in the past.

However, as whale activity slowed, XRP’s price began to retrace. The price dropped from a peak of over $2.40 to a low of $2.04—a loss of more than 15%. This decline was almost identical to the slowdown in whale accumulation, which strongly suggests that whale interest had been a key driver of XRP’s earlier price gains.

On-chain data from market analysis platforms like Santiment confirmed the correlation between whale accumulation and XRP’s price fluctuations. This pattern reinforced the idea that, for XRP to sustain bullish momentum, it relies heavily on the support from large institutional investors and high-net-worth individuals.

A New Uptrend—Is This Recovery for Real?

Despite the decline in whale accumulation, XRP has staged a remarkable recovery in the last 12 hours, climbing back to $2.21 at the time of writing. This quick bounce back raises the question of whether other market dynamics are now driving XRP’s price action.

Although whale accumulation has started to pick up again, the scale of their involvement in the latest rally is nowhere near as significant as it was during previous surges. Instead, the recent recovery points to a shift in the market. Buyers, both retail and institutional, appear to be stepping in and supporting the price at the $2 mark.

This unexpected rally indicates that XRP’s price may not be entirely dependent on whale movements after all. Rather, it is being driven by a broader combination of market sentiment and increased trading volume.

Technical Indicators Suggest Resilience

Several technical indicators further confirm the notion that XRP’s price is not solely controlled by whales. The Relative Strength Index (RSI), a popular indicator of buying and selling pressure, has moved out of oversold territory, signaling growing interest from buyers. Additionally, the 50-day and 200-day moving averages are still pointing upward, suggesting that XRP is maintaining a long-term uptrend, despite its recent correction.

These technical signals further bolster the argument that XRP’s current strength is a result of a range of factors working in tandem, rather than just whale accumulation. A shift in market sentiment and increased interest from retail and institutional traders are providing the necessary support for XRP to recover from its earlier losses.

Beyond Whale Activity: What Else Is Driving XRP?

While whale movements remain an influential factor, XRP’s recovery also highlights several other contributors to its price action. For one, the broader cryptocurrency market appears to be stabilizing after a period of significant volatility, with altcoins like XRP benefiting from renewed investor interest.

Increased trading activity across various exchanges suggests that both retail investors and institutional players are returning to the market, eager to capitalize on lower prices. As XRP remains above the critical $2 threshold, it signals strong support from buyers at this level, which reduces the likelihood of another major price breakdown.

Another potential driver for XRP’s recovery is the growing interest in its underlying technology, the XRP Ledger. Any positive developments regarding the adoption of XRP Ledger by financial institutions or the implementation of improvements to the network could further boost investor confidence, leading to additional price rallies.

Can XRP Maintain Its Recovery?

As of now, XRP has shown an impressive ability to bounce back from its recent decline. However, the key question is whether this recovery can be sustained in the long term. While whale activity is once again picking up, it is not yet at the level required to propel XRP to new highs. Therefore, it is crucial to see whether retail and institutional investors continue to support the asset at these price levels.

If XRP can hold above the $2.10 mark in the coming days, it could signal a sustained recovery. With strong buying interest and a stabilizing broader market, the altcoin could very well climb back toward its previous highs. On the other hand, if whale accumulation declines again, XRP may struggle to maintain its upward momentum, possibly leading to another round of sell-offs.

The Road Ahead for XRP

XRP’s 8% surge has brought new hope to investors who were concerned about the token’s future following a period of declining whale accumulation. While whale activity remains a significant influence on the price, it is clear that other factors—such as market sentiment, technical indicators, and rising trading volume—are also playing a pivotal role.

As XRP continues to recover, traders and investors will be closely watching the token’s price action and the broader market dynamics. The next few days will be critical in determining whether XRP can solidify its position and sustain its recent gains or if it will face another pullback.

Regardless of the short-term fluctuations, XRP’s recovery shows that its price movement is influenced by a range of forces. As the market continues to evolve, it will be interesting to see how XRP adapts and whether it can maintain its momentum for the long term.