Key Highlights

• Last month, XRP whales sold off 640 million tokens, amounting to $19.1 billion.

• The bearish trend on the charts suggests a loss of momentum.

According to on-chain data, XRP’s largest holders have been steadily offloading their tokens for nearly a month. Analysts are warning about a potential 30% drop.

Whale Activity: A Drop of 640 Million XRP

Data shows that since July 9th, XRP whales have released around 640 million tokens. This translates to over $19.1 billion at current market prices. Most of these transactions occurred while XRP was valued between $2.28 and $3.54.

This isn’t the first time whales have sold off during price increases this past year.

If XRP happens to rise from $1.65 to $3.27 between November and January, it could mean that these large holders are reducing their exposure. Chances are, retail investors will absorb some of that selling pressure.

That said, not every sale actually translates into liquidation. Some of the activity from XRP whales might just point to internal portfolio adjustments.

Interestingly, the patterns seem to suggest an inverse relationship. For instance, the recovery observed between January and April occurred when prices declined from $3.27 to $1.87, indicating some big investors were actually building their positions during the market’s low phase.

As of Thursday, there seems to be a slight recovery in whale activity.

Traders involved in the encryption markets have pointed out that unless whale wallets start accumulating more than 5 million XRP again, the market may remain weak.

“Currently, there’s no indication of sustained accumulation from large holders. This could be crucial for any positive change in trends.”

XRP’s Price Challenge: Holding Above $2.65

XRP needs to maintain a price above the $2.65 support line. Otherwise, there’s a risk of dropping to $2. The charts are revealing a bearish divergence between price increases and weekly momentum.

Recent price peaks have been recorded, yet the relative strength index (RSI) has marked lower highs since January.

The situation is reminiscent of what was seen at the top of the market in April 2021, where despite price rises, the momentum seemed to weaken.

Additionally, volume has tapered off during recent pushes, further indicating weakened momentum.

The ongoing price adjustment for XRP could push values up to a 20-week EMA of around $2.55, which aligns with the crucial support at $2.65.

If prices slip below this threshold, the likelihood of a more significant fall to a 50-week EMA around $2.06 increases, marking a critical reversal point after the recent rally.

This article does not provide investment advice or recommendations. All trading involves risks, and readers should conduct their own research before making decisions.