The crypto market is prone to frequent fluctuations, and the recent XRP crash on February 3 confirmed this truth. Investors, especially from South Korea, took advantage of the situation to strengthen their positions.
Korean Investors: Strategy and Actions
As XRP dropped from $3.08 to $1.78, Korean traders swiftly started massive purchases on trading platforms. An analyst known as Itrd noted that Koreans didn’t wait for recovery signals, acting decisively and continuously buying XRP during the drop. This occurred between 2:00 and 3:00 UTC, when XRP hit a low of $1.78 but then quickly recovered to $2.15.
Major Players and Derivatives' Influence
While retail traders strengthened their positions, large market entities took a more cautious stance. CryptoQuant data showed a significant increase in XRP transfers to Binance, with over 180 million tokens sent by whales. Hence, there is a potential profit-taking after the rapid rebound. The derivatives market was also severely impacted by the volatility, resulting in a massive liquidation of positions and a decrease in open interest from $6.35 billion to $3.55 billion.
Short-term Outlook and Uncertainty
The rebound of XRP portrays market resilience; however, the trend remains uncertain: the 50 and 100-day moving averages continue to act as resistance, and if the $2.20-$2.33 level becomes a reliable support, an upward movement is possible. Otherwise, a return to $2 or a new correction seems likely.
As the crypto market continues to evolve in unpredictable conditions, the question remains: will the significant Korean investors' purchases be enough to keep XRP above $2, or are we witnessing just a temporary reaction before another downturn?
