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XRP experienced a significant 10% price drop recently, driven by whale sell-offs and widespread market liquidations affecting altcoins.
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The liquidation event on Binance marked the third-largest XRP long liquidation this year, highlighting increased volatility despite a generally bullish longer-term trend.
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According to COINOTAG sources, whale activity intensified with over 50 million XRP moved to exchanges, signaling potential shifts in market sentiment.
XRP price dropped 10% amid major whale sell-offs and liquidations, yet bulls aim to defend key support between $2.95 and $3.00 in a volatile market.
XRP’s Third-Largest Liquidation Event of 2025 Highlights Market Volatility
In recent trading sessions, XRP faced a sharp correction, with a 10.33% decline marking its steepest daily drop since early April. This pullback coincided with a significant liquidation event on Binance, where approximately $86 million in long positions were liquidated within hours. The sell-off was exacerbated by whale activity, notably a wallet linked to Ripple co-founder Chris Larsen, which transferred over 50 million XRP to exchanges, intensifying selling pressure. Despite this, XRP’s broader market structure remains resilient, with bulls focused on defending critical support zones.
Whale Movements and Their Impact on XRP’s Price Dynamics
Whale behavior plays a pivotal role in XRP’s price fluctuations. Data from CryptoQuant reveals that the 90-day whale flow average recently turned negative, indicating that large holders may be offloading their positions. This shift contrasts with the positive whale flow observed earlier in the year, which preceded XRP’s strong rally. Additionally, over 2,700 wallets currently hold more than one million XRP each, representing a substantial portion of the circulating supply. These dynamics suggest a nuanced market where accumulation and distribution phases are closely intertwined, influencing short-term volatility.
Key Support Levels and Potential Market Scenarios for XRP
XRP’s price action remains closely tied to the $2.95–$3.00 support zone, a critical liquidity area tested during recent dips. A sustained break below this range could expose XRP to further downside risk, with the next notable support cluster lying between $2.66 and $2.86. Conversely, a rebound above $3.25 would signal renewed bullish momentum, potentially establishing a local bottom and encouraging further accumulation. Traders should monitor these levels carefully, as they will likely dictate XRP’s near-term trajectory amid ongoing market uncertainty.
Technical Indicators and Market Sentiment Analysis
Technical charts reflect mixed signals, with XRP’s four-hour timeframe showing attempts to stabilize above key psychological levels. The decline in futures open interest from $10.94 billion to $9.10 billion suggests a reduction in leveraged speculative positions, which may temper volatility in the short term. Market sentiment remains cautiously optimistic, supported by the broader bullish trend on higher timeframes. However, the presence of significant liquidation events underscores the importance of risk management for traders navigating this environment.
Conclusion
While XRP’s recent 10% correction underscores the challenges posed by whale sell-offs and liquidation cascades, the token’s longer-term bullish structure remains intact. Key support levels between $2.95 and $3.00 will be crucial in determining whether bulls can maintain control and prevent further downside. Investors and traders should remain vigilant, balancing optimism with prudent risk assessment as XRP navigates this volatile phase.
