The cryptocurrency market has been facing persistent bearish trends, and XRP is no exception. On-chain data reveals that XRP’s recent price turbulence is closely tied to significant whale activity, which could indicate further challenges for the token. Let’s dive into the details.
Whales Dump 900,000 XRP Tokens in 5 Days
According to insights shared by on-chain analytics platform Santiment, wallets holding between 100 million and 1 billion XRP have unloaded approximately 900,000 tokens over the last five days. This selling spree has not gone unnoticed by market participants, especially since these whales had previously supported XRP accumulation. However, the recent wave of liquidations has driven XRP’s value down.
From a high of $2.40 in October, XRP has slipped to $2.27 as of early November—marking a decline of over 6% in just 24 hours and a 15% drop over the past week. This sharp downturn has pushed XRP dangerously close to forming a “death cross,” a technical indicator where the 50-day moving average crosses below the 200-day moving average, typically signaling extended bearish trends.
Key Support Levels and Bearish Momentum
Adding to the selling pressure, XRP has repeatedly struggled to break key resistance levels between $2.60 and $2.70. With each failed rally, the token has formed lower highs, creating a scenario where traders are now eyeing support below $2.20, with some analysts pointing to the psychologically important $2 level.
If this support fails to hold, XRP could dive deeper toward the $1.80 to $1.85 range, areas that have historically attracted buying interest. On the other hand, bullish momentum could re-emerge if XRP manages to hold above $2 and Bitcoin (BTC) demonstrates stability in the broader market.
What Should XRP Traders Watch For?
While recent whale activity is undoubtedly contributing to short-term selling pressure, XRP still has a circulating supply of over 55 billion tokens, meaning these liquidations represent a relatively small fraction of its total market presence. Analysts suggest that beyond the $2 support level, traders should closely monitor the $2.40 to $2.50 resistance range, as a decisive break above this area could reverse the bearish narrative.
Investor Tip: Broader Crypto Context Matters
Traders and investors should consider the bigger picture when analyzing XRP price movements. Developments in the Bitcoin market, broader crypto sentiment, and regulatory news are all crucial factors that could influence XRP’s trajectory in the coming weeks.
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Conclusion
As XRP approaches a critical juncture with the looming risk of a death cross, all eyes are on whether the token can maintain support at $2. Whale activity has undeniably added to the selling pressure, but broader market stability could help XRP recover. For now, traders should focus on key technical levels, remain informed about market trends, and utilize reliable investment tools to make strategic moves during this volatile phase.
