XRP News Today: XRP Plummets 20% on Whale Sell-Offs and Bearish On-Chain Signals

XRP has experienced a sharp decline of over 20% since mid-July, driven primarily by large-scale sell-offs from whale investors. Whale wallets holding between 1 million and 1 billion XRP tokens have significantly reduced their holdings, moving from over 10 billion to 8 billion XRP [1]. This distribution activity has intensified bearish sentiment, with analyst Ali Martinez warning that the price weakness may persist if key support levels are breached [2].

The immediate support level for XRP is currently at $2.8, a critical area to monitor given the previous peak of $3.6. On-chain analysis indicates that a major support floor could emerge at $2.48, which aligns with historical accumulation levels and the 200-day Simple Moving Average (SMA) [3]. This suggests that a further 15% decline could occur if broader market sentiment deteriorates. Moreover, the MVRV death cross—a bearish signal—has been observed, reinforcing the dominance of short sellers and raising concerns among bulls [4].

Whale activity remains a central factor in XRP’s current bearish trend. Large holders have sold approximately $6 billion worth of XRP, directly impacting market stability [5]. Martinez notes that a similar distribution pattern was seen in late March when XRP dropped over 30% from $2.4 to $2.0. If history repeats, XRP may enter a period of discounted buying opportunities [6].

Despite the broader decline, some traders have started to increase their exposure to XRP. According to CoinGlass, smart Binance traders raised long positions from 64% to 69% within two days, signaling cautious optimism [7]. This follows a period of sharp trimming of long positions from 79% to 64% between mid-July and early August, indicating that certain market participants believe XRP may have found a near-term bottom [8].

XRP’s performance has also been influenced by Bitcoin’s pullback amid macroeconomic uncertainty. While BTC has yet to confirm a price bottom above $110K, some traders are already positioning for a potential rebound in XRP [9]. However, without a strong hold above $2.8, XRP may face additional downward pressure toward $2.48, where on-chain data suggests a more stable support level could form [10].

The cryptocurrency market remains in a state of flux, with XRP’s path forward dependent on whale behavior, key technical levels, and broader market conditions. Traders and investors are advised to closely monitor these developments as the asset faces continued volatility.

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[1] XRP Price Faces Continued Pressure as Key Support Levels Come Under Threat (https://en.coinotag.com/xrp-price-faces-continued-pressure-as-key-support-levels-come-under-threat/)