XRP News Today: XRP Bulls Face Caution as Whale Selling and RSI Signal Potential 30% Price Correction

XRP bulls are becoming increasingly cautious as technical indicators point to the possibility of a reversal in the altcoin’s current bullish trend. The recent surge in XRP, following the partial resolution of Ripple’s long-standing legal battle with the U.S. Securities and Exchange Commission (SEC), initially triggered a wave of optimism among traders and institutions alike. However, this optimism is now being tempered by concerns over potential sell-offs and volatility.

One of the key levels in focus is the $3.65 threshold, a historical resistance that has, when unbroken, often signaled bearish momentum. Traders are closely watching whether XRP can push above this level to confirm its bullish potential or if it will face a significant pullback. In addition, whale activity has raised red flags, as large-scale offloading of XRP tokens has led to fears of a potential 30% price correction [4]. The market is now in a critical phase where every movement is scrutinized for signs of capitulation or continuation.

Technical indicators also support a cautious stance. The Relative Strength Index (RSI) has begun to reverse toward the midline following a recent high of 56, suggesting that the current rally may be losing steam [3]. Analysts from major exchanges like Binance have noted that while bullish volume could still push XRP into the $4–$5 range, early signs of a reversal must not be ignored [2]. This warning is echoed in broader market sentiment, particularly in the context of “alt season,” where large-cap altcoins such as Ethereum and Solana are outperforming Bitcoin, which remains in consolidation. This dynamic is often a precursor to a market correction [6].

On-chain data further highlights the uncertainty. Bitcoin whale activity is subdued, raising concerns about the sustainability of the current crypto rally. Meanwhile, sentiment analysis shows that XRP has reached extreme levels of FOMO, with bullish sentiment spiking to its highest level since mid-June. These spikes are often seen as warning signs that a market top may be near, as they reflect a rush of retail investors entering after significant price gains [6]. This behavior has led some analysts to caution that XRP may be entering the final phase of its bull cycle [2].

Whale distribution patterns are also under scrutiny. While some argue that the recent selling activity may simply be part of normal market rotation, others warn of a bear trap, where traders could be lured into buying before a price collapse [5]. XRP’s price action following a deep correction from the $3.66 high has shown signs of support and potential rebound, but these are not necessarily reliable signals in a highly volatile market [7].

With the broader crypto market in a state of flux, investors are advised to closely monitor both technical and behavioral indicators. While the potential for XRP to reach the $4–$5 range still exists, the current environment demands a cautious approach. The combination of whale activity, sentiment spikes, and technical divergence from Bitcoin suggests that the XRP market is at a pivotal moment [1][2][3][4][5][6][7].

Source:

[1] 2 Charts Signal Caution to XRP Bulls, as Bitcoin Awaits Breakout and Ether Goes Bonkers (https://www.coindesk.com/markets/2025/08/09/2-charts-signal-caution-to-xrp-bulls-as-bitcoin-awaits-breakout-and-ether-goes-bonkers)

[2] Analyst Warns: XRP Entering Final Phase of Bull Cycle! (https://www.binance.com/en/square/post/28092067896490)

[3] Bitcoin uptrend takes a breather as Ethereum, XRP bulls ... (https://www.fxstreet.com/cryptocurrencies/news/crypto-today-bitcoin-uptrend-takes-a-breather-as-ethereum-xrp-bulls-tighten-grip-202508081200)

[4] Whales Offload Billions in XRP: Market Braces for Potential 30 ... (https://www.techi.com/whales-offload-billions-xrp-market-drop/)

[5] This Ripple (XRP) Metric Flashes Critical Warning Sign (https://cryptoadventure.com/this-ripple-xrp-metric-flashes-critical-warning-sign/)

[6] This Week in Crypto, Full Written Summary: W2 August (https://app.santiment.net/insights/read/this-week-in-crypto-full-written-summary-w2-august-8845)

[7] XRP / TetherUS Trade Ideas — BINANCE:XRPUSDT (https://www.tradingview.com/symbols/XRPUSDT/ideas/page-2/)