Significant selling activity by major XRP holders, often termed ‘whales,’ has cast a bearish shadow over the cryptocurrency’s immediate price outlook. Analysts warn XRP faces a potential 30% price drop unless specific market conditions improve.
In the past month, whale entities offloaded approximately 640 million XRP tokens, translating to a remarkable $1.91 billion reduction in holdings. This substantial divestment has heightened concerns regarding the asset’s near-term stability and sparked warnings of significant downward pressure.
Technical analysis points to a critical support level at $2.65. Analysts emphasize that a sustained hold above this price point is essential to avert a steep decline. Failure could see XRP dropping towards the 50-week Exponential Moving Average (EMA) around $2.06, representing a potential 30% depreciation from current levels.
Compounding the bearish sentiment are technical indicators revealing bearish divergence on XRP charts, signaling weakening momentum and reduced upside potential. Market trends currently show limited positive catalysts to counteract this pressure.
The scale of the recent whale sell-offs directly correlates with XRP’s price action and represents a particular risk factor for retail investors. Analysts further caution that preventing the steep decline would require XRP to consistently draw inflows exceeding 5 million tokens daily alongside maintaining its position above $2.65.