XRP Plummets 37.1% From All-Time High, Whales Sell Off $838M

XRP, the cryptocurrency, experienced a significant drop on March 10, closing at its lowest point in 99 days. The altcoin fell below the $2 support level but managed a short-term recovery of 12% the following day. Despite this recovery, the high time frame (HTF) charts indicate that XRP must maintain its position above the psychological level of $2 to avoid further decline. The current market conditions suggest that a deeper drawdown is possible.

One of the primary reasons for the potential drop in XRP's price is the lack of buyers in the market. XRP's price is currently down 37.1% from its all-time high of $3.40. Historically, when prices dipped by a similar percentage, spot market bids quickly absorbed the selling pressure, pushing XRP above $2.50. However, the current spot and perpetual markets for XRP have been relatively bearish over the past week. Data indicates that XRP’s spot cumulative volume delta (CVD) has dropped by 50% in March, signaling waning demand and sellers taking control. Similarly, futures traders are turning bearish, with perpetual CVD dropping to -1.18 billion on March 11. The open interest-weighted funding rate has also turned significantly negative, indicating more short positions were added over the past few days.

Another factor contributing to the potential drop in XRP's price is the continued selling spree by whales. Last week, XRP’s volume bubble map showed a surge in activity toward the end of February, aligning with an ongoing distribution phase for XRP. Distribution refers to a period in the market cycle when large investors slowly offload their positions to secure gains, usually happening close to the peak of an upward trend. Current data reveals that the distribution phase has intensified over the past seven days, with whale outflows steadily rising. This increase suggests that large holders continued to offload their XRP positions, further driving the distribution trend. Between March 4 and March 10, these large XRP holders offloaded roughly $838 million in positions, reflecting the ongoing bearish trend for XRP.

Additionally, the price pattern of XRP hints at a potential retest of the $1.60 level. On March 11, XRP’s 1-day chart closed below $2.05, which is the critical neckline of the daily head