Whales Dump 500,000 XRP in Just 48 Hours, Triggering Market Concerns

Whale Activity and Market Pressure

XRP is experiencing increasing pressure as large holders have liquidated over 500,000 tokens within a two-day period. Wallets holding between one million and ten million XRP coins have been actively reducing their positions, according to data from Ali (@ali_charts).

This wave of whale activity coincides with XRP's recent price struggles, where selling momentum has surpassed accumulation. The market is now closely observing whether this selling trend will intensify or if short-term support levels will prevent further declines.

XRP Price Struggles as Technical Indicators Turn Bearish

XRP is trading near the $2.29 mark, having slipped 0.68 percent in the past day. Technical indicators suggest a bearish outlook for the cryptocurrency. Bollinger Bands show a narrowing price channel, with resistance forming at $2.70 and support at $2.18, indicating potential for increased volatility.

The 20-day Simple Moving Average is currently positioned at $2.44, slightly above the current price, which points to ongoing selling pressure. Furthermore, the Relative Strength Index (RSI) is at 41.96, indicating weak buying strength and keeping XRP near oversold territory.

These technical indicators reflect a growing caution among traders, who appear hesitant to re-enter the market aggressively.

The price action observed since early October has consistently shown lower highs, reinforcing a bearish market structure. Attempts to achieve short-term recovery have repeatedly met resistance around the $2.44 level, which traders now consider a critical pivot point.

Market Reaction and Analyst Outlook

According to Ali, significant movements by whales often serve as precursors to larger market shifts. The current pattern of distribution from these large holders suggests a cautious sentiment from institutional players, which could impact overall market confidence. A reduction in whale holdings can affect market liquidity and potentially lead to price stagnation, creating an environment of uncertainty for short-term investors.

Analysts recommend closely monitoring whale wallet data in the upcoming trading sessions to assess any shifts in momentum. If XRP manages to maintain support above the $2.18 level and trading volumes increase, signs of a potential recovery might emerge. However, continued selling pressure from large holders could persist in weighing down the price performance, keeping traders vigilant for the next significant directional move in the market.