XRP News Today: XRP Plummets 10.3% as Failed $3.65 Breakout Sparks Bearish On-Chain Signals and Whale Activity

Ripple’s XRP token faces a pivotal moment as its price plummeted 10.3% in 24 hours, settling at $3.11 and testing the critical $3.10 support level. This sharp decline followed a failed breakout attempt above $3.65, a threshold that had previously acted as resistance. The drop has intensified scrutiny over the token’s technical structure, with analysts noting that a breach below $3.10 could accelerate further losses toward $2.63 [1].

Whale activity has introduced mixed signals to the market. Large investors accumulated 280 million XRP tokens over ten days, signaling long-term confidence. However, a single wallet’s 16.8 million XRP transfer to Coinbase—valued at over $54 million—has raised concerns about potential selling pressure. While accumulation typically reflects bullish sentiment, the timing of this exchange inflow complicates the narrative, as large transfers to exchanges often precede liquidity events [1].

On-chain metrics paint a concerning picture for XRP’s fundamentals. Network growth and transaction counts, which peaked at mid-July highs, collapsed sharply by July 24. Network growth plummeted to 1,899 users, while transactions dropped to 286,000—a stark decline from previous levels. This disconnection between price action and user engagement highlights growing uncertainty about XRP’s utility-driven valuation [2]. The Network Value to Transaction (NVT) ratio remains elevated at 699, indicating the token may be overpriced relative to its on-chain activity, a pattern often preceding market corrections [2].

Technical indicators reinforce bearish momentum. The MACD lines crossed bearishly, signaling waning buying pressure, while the MVRV Z-score—a measure of profit-taking risk—cooled to 3.49 after reaching overheated levels earlier in July. Although this reduction may ease short-term selling pressure, the elevated NVT ratio persists as a red flag for traders [2]. Meanwhile, the Cup and Saucer pattern forming on XRP’s chart offers a glimmer of hope for bulls. Analyst Cryptinsightuk noted that the pattern, developed after double rejections at $3.65, suggests potential continuation of the upward trend if the resistance level is broken [1].

Regulatory developments add complexity to the outlook. The SEC approved the Bitwise 10 Crypto Index Fund, which includes XRP, but placed the decision under review. This follows the approval of the first XRP ETF and Grayscale’s application to convert its Digital Large Cap Fund into an ETF structure. These moves reflect growing institutional interest but also underscore regulatory uncertainty, which could impact market sentiment [1].

The coming sessions will be critical for XRP’s trajectory. Bulls must defend the $3.10 level to stabilize the trend, but weak on-chain fundamentals and bearish technicals increase the risk of a sharper decline. A successful hold above this threshold could allow the Cup and Saucer pattern to play out, potentially propelling XRP toward $3.80. However, a breakdown may test the $2.63 support, exposing further downside risks. Traders will closely monitor network activity for signs of recovery, as sustained user engagement is essential for justifying current valuations [1].

Source:

[1] [XRP Price: Network Activity Collapses as Whales Accumulate]

https://coincentral.com/xrp-price-network-activity-collapses-as-whales-accumulate-whats-next-for-xrp/

[2] [XRP’s on-chain activity collapses – Can the price hold at ...]

https://ambcrypto.com/xrps-on-chain-activity-collapses-can-the-price-hold-at-3-10/