XRP Faces Potential Price Pressure as Large Holders Resume Offloading Amid Negative Whale Inflows

• Large XRP holders have resumed heavy outflows, pushing the 90-day whale inflow average into negative territory.

• Analysts draw comparisons to a similar pattern earlier this year that preceded a 50% price drop.

• Unless whale inflows recover, analysts warn that XRP may struggle to regain bullish momentum.

Large XRP holders are offloading their assets, raising concerns about price pressure. Analysts warn of potential downturns unless whale inflows recover.

XRP’s Price Movement: What to Expect?

XRP trades at $3.08 at the time of writing. Despite posting an approximate 4.7% increase in the past 24 hours, the token’s performance over the past week has been negative. Since dipping from its July peak of $3.6, it has struggled to reclaim upward momentum.

On the daily chart, XRP is still showing signs of strength, holding above key moving averages. Price is still caught in a short-term range between $2.95 and $3.10, with no decisive breakout yet.

The Relative Strength Index (RSI) has climbed into neutral territory, hovering near 54. This suggests that the market is balanced for now and there’s room for price to move either way.

If whale inflows return to the range analysts are calling, it could spark fresh momentum and a push higher. But if the heavy trend of outflows continues, the market may stay under pressure, with downside risks remaining in play.

What Are Analysts Saying?

On August 7, a CryptoQuant analyst flagged a sharp drop in the 90-day average whale inflow for XRP, noting that it has now flipped negative. The trend reflects renewed outflows from large wallets, marking a key shift from the previous accumulation trend.

Drawing historical parallels, the analyst revealed that a similar pattern played out earlier this year, occurring just before a local top in February. At the time, the downturn lasted several weeks, with prices nosediving nearly 50% in response.

While the CryptoQuant analyst noted that the current phase is shorter, he shared that the structure now forming is similar, pointing to the severe outflows with no clear signs of immediate reversal. This builds on another analyst Ali Martinez’s caution that over 720 million XRP have been offloaded in recent weeks, adding to the negative pressure around the token.

Key Takeaways

• Whale Outflows: Large XRP holders are offloading their assets, leading to negative whale inflows.
• Price Pressure: Analysts warn that unless whale inflows recover, XRP may struggle to regain bullish momentum.
• Market Sentiment: Current trends suggest potential downside risks remain in play.

Conclusion

In summary, the recent trend of large XRP holders offloading their assets raises concerns about potential price pressure. Analysts emphasize the importance of monitoring whale inflows to gauge future price movements. Without a recovery in inflows, XRP may continue to face challenges in regaining bullish momentum.