XRP has recently made waves in the market, with substantial whale activity and rising leverage suggesting the potential for a significant breakout. A massive 300 million XRP, valued at over $629 million, has just been transferred from an unknown wallet to Ripple, igniting speculation about the next major move for the cryptocurrency. This large-scale transfer, combined with increased leverage and rising liquidations, hints that XRP may be gearing up for a major price shift. However, whether the altcoin will break higher or face a downside correction remains uncertain, with whale actions holding the key to the next direction.

Consolidation at a Crucial Support Level

At press time, XRP was trading at $2.11, down 1.39% in the last 24 hours. The coin is consolidating within a tight range between $2.02 and $2.45, which has acted as support and resistance since January. These levels have been pivotal for XRP’s price action, and a decisive break in either direction could signal the next major move.

If XRP fails to hold the $2.02 support, it may retrace to lower levels, potentially around $1.80. On the flip side, if the altcoin breaks above $2.45, it could test the next major resistance at $2.95, potentially fueling a larger bullish continuation. With XRP at a key juncture, the market is waiting for confirmation of either a breakout or a breakdown.

Leverage and Liquidation Trends

One factor to watch closely is the increase in leverage among traders. The leverage ratio stood at 0.232 at press time, reflecting a 1.02% increase in the last 24 hours. This rise suggests that traders are preparing for big price movements, with many using borrowed capital to amplify their positions. While such spikes in leverage often point to bullish expectations, they also increase the risk of cascading liquidations, particularly if the market moves against traders’ positions.

Recent liquidation data has revealed that $3.35 million in long positions were liquidated, compared to just $1.13 million in shorts. This imbalance points to overly optimistic bullish sentiment. However, large-scale liquidations typically occur at local price peaks or near crucial support zones. If XRP loses the $2.02 support level, more long positions could be wiped out, increasing downside volatility and potentially trapping late buyers.

Whale Activity: Repositioning or Preparing for a Selloff?

Whale activity has also been a point of focus. Whale-to-exchange flow increased by 0.43%, with 886 whale transactions recorded. While this rise is modest, it aligns with the recent $629 million XRP transfer to Ripple, suggesting that large holders may be repositioning their assets. While it is not directly bearish, this activity could indicate preparation for a larger move, potentially involving institutional partnerships or strategic internal liquidity adjustments.

The increase in whale transactions and the large XRP transfer are likely to contribute to short-term volatility. If these whales decide to sell, the market could experience increased price fluctuations. However, if this activity reflects internal positioning ahead of a positive statement or event, it could fuel the bullish momentum needed for a breakout.

XRP’s Potential for a Breakout

Given the growing whale activity, rising leverage, and recent price action, XRP appears to be preparing for a major move. However, the key to a breakout will be whether the cryptocurrency can hold above the critical $2.02 support level. If this level holds, coupled with a fundamental catalyst, XRP could make its way toward its next resistance at $2.45 and beyond.

Ultimately, XRP’s next move will depend on whether it can maintain support, manage leverage risks, and capitalize on whale activity. As such, traders should keep an eye on key levels and monitor whale movements closely, as they may hold the answer to whether a breakout is imminent.