Home Altcoins News XRP Faces Whale Sell-Off Pressure, but Long-Term Holders Offer Support

XRP Faces Whale Sell-Off Pressure, but Long-Term Holders Offer Support

XRP Whale

XRP has been struggling to maintain its momentum amid significant fluctuations in its price action. Currently priced at $3.10, the cryptocurrency is holding steady above the critical $2.95 support level. However, its stability has been tested by a major sell-off by crypto whales who offloaded approximately 160 million XRP, valued at $500 million, in just one day. This move from the large holders has placed considerable pressure on XRP’s price, fueling fears of a potential downtrend. Despite this, long-term holders are playing an essential role in preventing a dramatic collapse in value.

The Impact of Whale Activity on XRP’s Price

The sell-off by whale addresses—those holding between 10 million and 100 million XRP—has been a significant contributor to the downward pressure on the cryptocurrency. The sell-off occurred after XRP failed to maintain its upward trajectory, prompting some large holders to take profits in the face of a lack of sustained bullish momentum. However, it’s worth noting that not all whales are abandoning the asset. Some have already begun reacquiring XRP, signaling renewed confidence in the asset’s long-term prospects. If this trend continues, it could offer vital support to XRP’s price and push it back toward its previous high.

Long-Term Holders Maintain Confidence

Despite the selling from whales, XRP’s broader market sentiment remains relatively strong. A key indicator of this strength is the MVRV Long/Short Difference, which remains in the positive. This suggests that long-term holders (LTHs) are still in profit and are refraining from selling, providing a stable base for the coin. Historically, LTHs have played a critical role in supporting the price of cryptocurrencies like XRP, as they typically do not panic-sell during market dips. Their continued holding of XRP suggests that they believe in the long-term potential of the asset, which could prevent the price from falling into a deeper decline.

Critical Support and Resistance Levels for XRP

At the time of writing, XRP is holding above the crucial $2.95 support level. This level has already been tested twice in the past few days, highlighting its importance in maintaining price stability. If XRP successfully defends this support zone, it could set the stage for a potential rally toward its all-time high (ATH) of $3.40. Reclaiming this level, however, will not be an easy task. The price must overcome resistance from both whales who are selling and from a broader market sentiment that has been volatile.

If whale activity continues to lean toward accumulation rather than distribution, XRP could see a surge in price, possibly breaking past its ATH and setting new records. However, if the selling pressure intensifies and XRP drops below the $2.95 support, the sentiment could shift bearish, leading to further price corrections. In such a scenario, XRP could see a decline to lower levels, such as $2.73, and potentially even lower if the downward momentum picks up.

Looking Ahead: The Role of Whale Accumulation

The next few days will be pivotal for XRP’s price action. Whale behavior will play a crucial role in determining the future direction of the asset. If whales resume buying XRP, their influence could fuel a new rally that challenges its previous high. Conversely, if selling pressure intensifies and the $2.95 support is lost, XRP could face a more significant downturn, making it essential for investors to keep a close eye on market trends.

XRP’s price outlook is a delicate balancing act between whale selling and long-term holder support. The cryptocurrency could still see new highs if the market remains favorable, but any significant breach of support levels would likely result in increased volatility and further declines in price.

Read more about:
Share on

Julie J

Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×