XRP whales have recently sent shockwaves through the market by unloading approximately 70 million XRP tokens, valued at $178 million, within a short span of just 48 hours. This massive sell-off poses significant challenges for the cryptocurrency, which is currently clinging to fragile support at $2.50. With XRP trading at $2.54, market analysts express concerns that continued selling might push the price closer to the critical support level of $2.00.
XRP Faces Headwinds as Whales Offload Tokens
The sell-off was spearheaded by wallets holding between 100,000 and 10 million XRP, as indicated by Santiment’s on-chain analytics. This trend suggests a growing bearish sentiment among large holders, which could indicate a tumultuous road ahead for XRP.
Historically, such whale activity often precedes short-term price declines, noted one analyst, highlighting the potential risks associated with these recent transactions.
XRP’s precarious position above the $2.50 support zone has undoubtedly been impacted by this sell-off, which could lead to further declines if selling pressure persists.
Despite the negative sentiment, there are glimmers of hope on the technical front. Analysts are observing a prolonged consolidation period for XRP since January 2025, characterized by trading within a narrow range. This accumulation pattern often precedes significant directional shifts in price.
According to technical analysis from ChartNerd, a critical breakout could occur if XRP can clear the $2.60 resistance level. Such a move could propel the cryptocurrency towards the 1.618 Fibonacci extension, suggesting a potential price surge between $5 and $6. Furthermore, the continuing support from the weekly 55-day exponential moving average (EMA) reinforces XRP’s bullish structure.
XRP has been in vertical accumulation since January 2025. The forthcoming breakout is anticipated to be explosive. If the $2.60 resistance is cleared, focus will shift toward the $5-$6 range.
Market Sentiment and Future Prospects
XRP’s forthcoming performance hinges on several broader market factors, particularly the looming approval of a spot XRP exchange-traded fund (ETF). Although expectations were set for an October launch, delays connected to the U.S. government shutdown have left many investors waiting. Meanwhile, Ripple’s strategy to raise $1 billion for an XRP treasury is viewed positively in the market.
At the time of writing, XRP’s price is reported at $2.54, reflecting a 3% gain over the last 24 hours. Despite the recent whale activity, the cryptocurrency has shown resilience, rebounding nearly 8% over the past week. However, its ability to establish $2.60 as a support level is crucial for targeting $3 in the immediate future.
The landscape for XRP might soon shift, and investors will be watching closely as the whales make their moves and market trends evolve.
