The cryptocurrency market witnessed a sudden shift as XRP saw a significant price drop on December 1st. Major whale wallets, those holding between 1 million and infinity XRP, have offloaded billions of tokens, effectively reversing their months-long accumulation trend. This aggressive distribution has undoubtedly weighed heavily on XRP’s value.
XRP Price Plummets Amid Whale Selling
On-chain data indicates that XRP’s price fell by over 6%, trading near $2.02 on December 1st. This drop showcases how whale activities directly influence market dynamics. According to data provided by Santiment, the supply held by top XRP holders has plummeted from a November peak, reflecting an accelerated distribution of tokens into the market. Large wallets now hold just 57 billion XRP compared to over 70 billion previously—one of the steepest single-week reductions observed in 2025.
The Accumulation/Distribution (A/D) indicator further highlights sustained selling pressure since August, with the metric now hovering near 8.14 billion. This downward trend in A/D lines suggests that informed traders began reducing their holdings even as XRP experienced short-term recoveries.
What This Means for XRP’s Technical Trends
XRP’s technical analysis paints a bearish picture. After failing to breach the $2.30–$2.35 resistance zone last week, the cryptocurrency continued its downtrend, forming lower highs and breaking below key support levels. The most recent 6% drop confirms that sellers remain in control, with the token trading close to the lower bounds of its multi-week channel.
For any chance of recovery, analysts argue that XRP must reclaim $2.20 and subsequently break above the $2.30 resistance zone. However, if selling pressure continues and the price dips below the psychological $1.90 level, the market could face deeper corrections in the near term.
Is There Hope for a Rebound?
The current market scenario underscores the importance of fresh demand to offset whale-driven sell-offs. A key metric to monitor is buyer interest at lower levels. The psychological $1.90 support level remains crucial for stabilizing XRP’s overall structure. Should buyers step in, a rebound from this zone could bring the price back to the higher end of the trading range near $2.20.
Conclusion: Navigating a Tough Market Environment
While the current circumstances suggest a bearish spin for XRP, there is resilience in the cryptocurrency market’s ability to attract fresh capital during downturns. For investors looking for opportunities, this could be a moment to assess the long-term viability of XRP within the broader blockchain ecosystem.
If you’re an XRP holder or plan to invest, staying informed about market movements is crucial. For up-to-date insights, consider securing your cryptocurrencies with the Ledger Nano X wallet, a trusted solution for managing and safeguarding digital assets.
