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XRP has found itself under intense selling pressure over the past week, becoming one of the worst-performing major cryptocurrencies. While Bitcoin (BTC) and Ethereum (ETH) recorded modest declines of 2.25% and 0.5% respectively, XRP dropped by over 13%, sparking concerns among investors about the token’s short-term outlook.
XRP Slides While Market Remains Relatively Stable
Compared to the broader crypto market, XRP’s recent performance stands out for all the wrong reasons. While most top cryptocurrencies experienced minor pullbacks, XRP plunged nearly 14% from its weekly high, trading around $3.13 as of midweek. Even compared to volatile assets like Dogecoin and niche coins like Fartcoin, which dropped 20% and 35% respectively, XRP’s decline is significant.
This drop followed closely on the heels of XRP’s recent price peak above $3.60. The abrupt reversal has triggered concerns that a larger correction may be in play, with technical and on-chain data both hinting at growing downside pressure.
Ripple Co-Founder’s XRP Transfer Fuels Sell-Off Fears
A major catalyst behind XRP’s poor performance was a large transaction linked to Ripple co-founder Chris Larsen. According to blockchain investigator ZachXBT, Larsen transferred nearly $175 million worth of XRP to four different addresses. Of that amount, about $140 million was moved to cryptocurrency exchanges, implying potential selling activity.
The timing of these transfers—just as XRP approached its recent high of $3.60—fueled speculation that insiders were cashing out at the top. This perception led to panic among retail holders, many of whom followed suit and sold their XRP to avoid potential losses. The sharp reaction underscores how sensitive the market is to whale movements, especially when they coincide with price peaks.
Over 90% of XRP Supply in Profit: A Recipe for Profit-Taking
Another key factor behind XRP’s steep decline is the high percentage of the token’s supply currently sitting in profit. Data from Glassnode shows that over 93% of XRP supply was in profit when the price hit $3.60. This level of profitability has historically acted as a signal for traders to lock in gains.
In contrast, Ethereum’s supply in profit stands at around 84.7%—still below the so-called “overheated” threshold. When a large portion of a coin’s holders are in profit, the temptation to sell increases, especially if sentiment starts to weaken or other investment opportunities arise.
This wave of profit-taking can create downward pressure, especially when combined with bearish headlines and influential whales moving large amounts of tokens. For XRP, it appears that both factors struck simultaneously.
Short-Term Holders Could Add to Selling Pressure
Glassnode’s data also reveals that many of XRP’s recent buyers—those who entered the market within the past 1 to 3 months—purchased the asset at prices ranging between $2.30 and $2.80. With XRP peaking at $3.66, these holders were sitting on 20–30% gains before the correction started.
Now, as the price drops closer to their entry levels, many of these short-term investors may be considering exiting their positions to secure remaining profits or limit losses. This behavior could further accelerate XRP’s drift back toward its realized price range.
Short-term realized price levels now sit between $2.30 and $2.80, suggesting XRP may continue to correct in the near term unless buyers step in aggressively to reverse the trend.
What’s Next for XRP?
With the $3 price mark now at risk, XRP’s next moves will likely depend on a combination of technical support levels, broader market sentiment, and any further whale activity. If support holds near the realized price zones, XRP may stabilize. However, a break below $2.80 could open the door to deeper losses.
In the medium term, XRP may need new catalysts—such as regulatory clarity, positive news from Ripple, or a broader crypto market rally—to regain momentum. Until then, investors may remain cautious, especially with profit-taking still a looming factor.
Conclusion
XRP’s sharp decline over the past week highlights how sensitive the market remains to whale movements and investor sentiment. With over 90% of holders in profit and high-profile transfers raising alarms, the recent correction may not be over yet. Traders and investors should monitor XRP closely as it navigates these volatile waters, with the $3 level serving as a key psychological and technical barrier.
