XRP News Today: XRP Faces Sell-Off as Key Support Levels and Whale Activity Trigger 13% Weekly Drop

XRP is currently at a critical junisction as analysts warn of a potential price crash amid increased selling pressure and market uncertainty. The token recently hit a peak of $3.66 but has since retreated below the $3 level, a threshold that traders have long watched as a key psychological barrier [1]. The decline has been attributed to a combination of whale activity, profit-taking by short-term investors, and broader market sentiment shifts [2].

One of the most significant developments came when Ripple co-founder Chris Larsen moved approximately $140 million worth of XRP to Binance, triggering speculation that he might be preparing to sell [1]. This event coincided with XRP hitting its recent high, fueling fears of a coordinated sell-off. As a result, the token fell more than 13% in a week, outperforming the decline seen in Bitcoin and Ether [1].

The high percentage of XRP holders in profit has also contributed to the downward pressure. According to Glassnode, over 93% of XRP’s circulating supply is currently in profit, reaching a threshold historically associated with price corrections [1]. Short-term investors, who had entered the market between $2.30 and $2.80, locked in gains as the price surged, further exacerbating the sell-off [1].

In the futures market, XRP’s open interest has declined by $2.4 billion, a 21% drop from its peak. While this still places it higher than a month ago, it suggests that leveraged traders remain exposed to potential volatility [1]. If the price breaks below the $2.60 support level, it could trigger cascading liquidations, potentially accelerating a further decline [1].

On-chain data also reveals that XRP’s fundamental use cases remain underdeveloped. Only $134 million in tokenized assets exist on the XRP Ledger, significantly trailing competitors like Avalanche, which holds $190 million [1]. In addition, XRP’s DEX trading volumes do not even place it in the top 50 blockchains, according to DefiLlama [1]. These metrics indicate that while the price may have risen, the token's utility and adoption remain limited [1].

Despite these concerns, some analysts argue that the recent dip could be a setup for a bear trap. Van Code, for example, suggests that a false breakdown could precede a new rally, particularly if XRP manages to break above $3.30 [2]. Technical indicators also point to a potential bullish flag pattern formed from late 2024 to early 2025, which some see as a sign that XRP could reach $4 by the fall [2]. However, the realization of this scenario will depend on XRP’s ability to sustain a close above $3.30 [2].

Ripple’s CTO, David Schwartz, has emphasized XRP’s role as a bridge currency, particularly in comparison to stablecoins like RLUSD, highlighting a practical application within the crypto ecosystem [2]. This could offer a foundation for long-term value, though it remains to be seen whether this utility will drive broader adoption [2].

The broader macroeconomic environment remains a wildcard. The recent FOMC decision has been cited as a potential catalyst for market moves, with Ethereum consolidating and many altcoins weakening [2]. Analysts suggest that the outcome of the Fed’s decision could influence the next major shift in crypto prices, adding an extra layer of uncertainty for XRP [2].

In summary, XRP faces significant short-term headwinds, with key technical and fundamental indicators suggesting vulnerability. If the price continues to fall, it could trigger further selling and a potential correction. However, the token still retains strong bullish momentum year to date, with a 57% increase in value [2]. The coming weeks will be critical in determining whether XRP can regain buyer confidence or if a deeper decline is on the horizon.

Sources:

[1] LiveBitcoinNews. (2025, July 25). XRP Price at Risk: Why Analysts Believe a Price Crash Could Be Inbound. https://www.livebitcoinnews.com/xrp-price-at-risk-why-analysts-believe-a-price-crash-could-be-inbound/

[2] AInvest, AOL.com, The, TradingView, CoinGape, The. (2025, July 17–30). Various articles on XRP price movements, technical patterns, and analyst predictions. See individual citations in the text.