Analysts are highlighting indicators suggesting a possible upcoming short-term price correction for XRP. This assessment stems from recent surges in exchange holdings and large-scale investor transactions.
Data indicates that reserves of XRP on centralized exchanges, particularly Binance, have climbed to 2.96 billion tokens. This marks the highest level of exchange reserves recorded since January.
Market observers note historical precedence, pointing out that a similar spike in exchange deposits observed in May was swiftly followed by a significant price decline of approximately 20%.
Further reinforcing bearish near-term signals, large transaction activity involving XRP, known as whale activity, has surged. The volume of transfers exceeding one million dollars in value has reached a three-month high, potentially signaling a distribution phase by major holders.
Technical analysis identifies critical support zones for XRP. Immediate support is seen around $2.80 and $2.77. Should these levels fail to hold, analysts suggest downside momentum could accelerate, targeting the key Fibonacci retracement support level at $2.34. A move to $2.34 would represent a potential correction of about 20% from current price levels.