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Ripple’s native token, XRP, has come under heavy selling pressure this week, dropping another 6% as investors exited the broader altcoin market. The timing is significant, with traders bracing for U.S. Federal Reserve Chair Jerome Powell’s speech at Jackson Hole on Friday, an event historically known to trigger volatility across global markets.
Over the past six days, XRP has lost roughly 13% of its value, slipping below multiple technical support levels and raising concerns about whether the cryptocurrency can sustain its mid-2025 rally. The sell-off also coincides with significant whale activity, suggesting that large holders may be positioning defensively ahead of potential macroeconomic shocks.
XRP Price Action: Breaking Key Supports
On Wednesday, XRP slid below the 50-day Simple Moving Average (SMA), a widely tracked indicator of medium-term trend direction. The token also breached the $2.95 level and dropped out of a symmetrical triangle pattern, a technical structure that often precedes sharp directional moves.
If the 50-day SMA fails to act as support, analysts warn that XRP could retest the $2.78 zone. A further break lower could expose the cryptocurrency to the $2.60 level, which served as a strong accumulation area during the spring rally.
Despite the bearish shift in momentum, some traders point out that XRP’s consolidation comes after an extended uptrend, suggesting that corrections are part of a healthy market cycle. Whether the token can reclaim the $3 psychological level will likely depend on macro signals later this week.
Whale Activity: Diverging Strategies
On-chain data reveals that large XRP holders are reducing exposure. Wallets holding between 10 million and 100 million XRP offloaded approximately 460 million tokens over the past week. This selling pressure has weighed heavily on the market, amplifying downside volatility.
At the same time, smaller whale wallets, defined as holding 1 million to 10 million XRP, added roughly 130 million tokens during the same period. This divergence indicates mixed sentiment among major investors: some are taking profits while others view the correction as a buying opportunity.
Such whale behavior highlights the uncertainty currently dominating the crypto landscape. With XRP trading near pivotal technical levels, these opposing strategies could determine whether the token stabilizes or falls further.
Profit Levels Remain Exceptionally High
One striking feature of XRP’s market structure is the profitability of its holders. Since mid-January 2025, more than 93% of circulating supply has remained in profit, a rare phenomenon in crypto markets. On average, XRP holders have consistently seen profit margins above 80%, reflecting the strength of the rally that began after last November’s U.S. presidential election.
That election victory, coupled with favorable regulatory developments under the new administration, created a tailwind for Ripple and its token. The conclusion of the long-running SEC lawsuit against Ripple further boosted confidence, clearing one of the biggest legal hurdles that had weighed on XRP for years.
However, high profitability levels can be a double-edged sword. Analysts warn that when a majority of holders are sitting on gains, the risk of profit-taking surges if broader market sentiment turns bearish. This dynamic may explain why larger whales have been reducing exposure ahead of Powell’s Jackson Hole remarks.
Macro Risks: All Eyes on Jackson Hole
The upcoming Jackson Hole Economic Symposium has put global investors on high alert. Fed Chair Jerome Powell’s annual address often signals the central bank’s stance on monetary policy, shaping expectations for interest rates, inflation management, and risk asset performance.
For crypto markets, the stakes are particularly high. If Powell hints at tighter financial conditions or renewed concerns about inflation, investors could retreat further from speculative assets such as altcoins. Conversely, a dovish tone might restore confidence and surge a rebound across risk markets, including XRP.
Given that altcoins often experience sharper volatility than Bitcoin during macro events, XRP traders are bracing for potential turbulence. With the token already under pressure from whale selling, Powell’s remarks could either accelerate losses or provide the catalyst for a relief rally.
Outlook: Consolidation or Deeper Correction?
For now, XRP remains in a precarious position. The breakdown below the 50-day SMA and key support levels suggests near-term weakness. Large-scale selling by whales underscores the caution in the market, even as smaller investors accumulate.
Still, the long-term backdrop for XRP remains constructive. The SEC case resolution, Ripple’s growing role in cross-border payments, and continued profitability among holders all signal underlying strength. The key question is whether the market can weather the current storm without triggering a deeper correction.
If XRP can defend the $2.78 support and broader market sentiment improves following Powell’s speech, the token may stabilize and reclaim higher ground. But if bearish momentum continues and profit-taking accelerates, a test of the $2.60 level or lower cannot be ruled out.
Conclusion
Ripple’s XRP is navigating a critical juncture. With whales unloading nearly half a billion tokens, technical levels breaking down, and macro uncertainty looming, short-term risks are elevated. Yet, strong long-term fundamentals and steady institutional adoption suggest that this may ultimately be a consolidation phase rather than a trend reversal.
As the market awaits Powell’s Jackson Hole remarks, XRP’s next move will likely hinge on whether investors interpret the Fed’s outlook as supportive or restrictive for risk assets. Until then, traders should expect heightened volatility and prepare for swift swings in either direction.
