Analysts warn that XRP may undergo a significant price correction as technical indicators flash bearish signals and large holders accelerate selling activity. A sell signal accompanied by an MVRV death cross has emerged on XRP’s three-day chart, signaling potential further downside momentum.
Whale investors have offloaded over 720 million XRP tokens in recent transactions, exacerbating selling pressure on the cryptocurrency. This substantial outflow has heightened focus on critical support levels, with $2.80 now representing a crucial defensive threshold for the asset.
Market technicians indicate that failure to maintain the $2.80 support could trigger a retreat to the $2.48 price level. Current momentum appears neutral-to-bearish as reflected by a Relative Strength Index (RSI) reading of 48.8, leaving limited buffer against sustained bearish pressure.
Despite near-term concerns, longer-term moving averages continue to signal an overall bullish trend for XRP. This suggests the asset retains underlying strength despite facing significant short-term technical and whale-induced headwinds.