‘Buy the Dip’ Opportunity or Further Correction?

TL;DR

• Some analysts see XRP’s recent price plunge as a golden buying opportunity rather than a reason to panic.
• However, a massive 130 million XRP sell-off by whales raises questions about whether the correction is over or if more downside is ahead.

‘Don’t Let Fear Hold You Back’

As reported earlier today (February 3), the cryptocurrency market witnessed a substantial crash. Ripple (XRP), which was at the forefront of gains in the past few months, has joined the club of the biggest losers (on a 24-hour scale).

Its price briefly tanked below $2 for the first time this year before recovering to the current $2.40 (per CoinGecko’s data). This represents a whopping 15% daily decline.

However, it seems like some pro-XRP analysts remain unfazed by the latest pullback. The popular X user EGRAG CRYPTO successfully predicted the plunge, adding that $1.90 is “the last line of defense.” 

They also opined that the ongoing correction is the perfect “buy the dip” opportunity. “If you’re looking for a dip to buy, this is it. But don’t let fear hold you back,” the analyst stated.

Another person who doubled down on their support toward XRP is the X user JackTheRippler. The enthusiast told their 340,000 followers on the social media platform that they sold their house to accumulate more of Ripple’s native token.

The Opposite Scenario

Contrary to the belief from some industry participants that the asset would soon restore its bullish trend, one important factor signals that the storm might not be over yet. 

As CryptoPotato reported, whales have sold 130 million XPR (worth over $310 million) in the last 24 hours. The actions of those large investors could significantly impact the performance of the cryptocurrency. 

A mass sell-off can create downward pressure on the price, while accumulation can have the opposite effect. After all, a buying spree will reduce the circulating supply of XRP, which, combined with non-declining demand, should have a positive effect on the valuation.

It is worth mentioning that whales scooped billions of tokens at the beginning of January. Several days later, XRP’s price skyrocketed to as high as $3.39, or just 1% away from reaching its all-time high registered seven years ago.