XRP Price Faces Continued Pressure as Key Support Levels Come Under Threat

• Whale wallets holding 1 million to 1 billion XRP tokens have reduced their holdings significantly, indicating sell pressure.

• Analyst Ali Martinez warns that XRP’s price weakness may continue if key support levels are breached.

• Current data shows that XRP could find a major support floor at $2.48, based on on-chain analysis.

XRP has seen a significant price drop of over 20% since mid-July, with whale sell-offs impacting market stability. Traders are closely watching key support levels.

What is Causing XRP’s Price Decline?

The decline in XRP’s price is primarily attributed to significant sell-offs by whale investors, who have reduced their holdings from over 10 billion to 8 billion XRP tokens. This sell pressure has led to a drop of over 20% since mid-July.

How Are Whale Activities Impacting XRP?

Whale wallets, particularly those holding between 1 million to 1 billion XRP, have been actively trimming their holdings. This trend indicates a bearish sentiment in the market, as highlighted by analyst Ali Martinez.

Frequently Asked Questions

What is the current support level for XRP?

The current support level for XRP is at $2.8, with a potential major support floor at $2.48 based on on-chain analysis.

How much has XRP dropped since mid-July?

XRP has dropped over 20% since mid-July, primarily due to sell-offs from whale investors.

Key Takeaways

• XRP price has dropped over 20% since mid-July.: The pullback could extend if the $2.8 immediate support cracks.
• Whale activity is a significant factor: Large holders have sold approximately $6 billion worth of XRP.
• Potential support levels: Key support is at $2.8, with a major floor at $2.48.

Conclusion

XRP’s price decline is closely tied to whale sell-offs, with critical support levels being tested. Traders are advised to monitor these levels closely as market dynamics evolve.

• XRP price has dropped over 20% since mid-July, primarily due to significant sell-offs by whale investors.

• Analyst Ali Martinez warns that XRP’s price weakness may continue if key support levels are breached.

• Current data shows that XRP could find a major support floor at $2.48, based on on-chain analysis.

XRP has seen a significant price drop of over 20% since mid-July, with whale sell-offs impacting market stability. Traders are closely watching key support levels.

More Trouble for XRP Bulls?

The distribution from the above cohort was not yet over as of press time; hence, the XRP pullback may extend.

In fact, Martinez noted that a bearish signal, MVRV death cross, was also flashed, further reinforcing short sellers’ dominance.

Source: X

The last time the indicator was triggered in late March, XRP dropped over 30% from $2.4 to $2.0. If the trend repeats, a more discounted buying window could open up.

But how far can the altcoin drop from the press time value of $2.9? Per Martinez, the $2.8 was also a key support, but a major floor could be found at $2.48 from an on-chain perspective.

Source: X

The on-chain chart showed most current holders scooped the altcoin between $2.2 and $2.48, making it a key downside risk level to watch.

Interestingly, price charts also marked out similar levels near the 200-day Simple Moving Average (SMA). This suggested that XRP could plunge by an extra 15% if broader market sentiment sours.

Source: XRP/USDT, TradingView

However, some traders had begun increasing their exposure to the altcoin. According to CoinGlass, smart Binance traders increased long positions from 64% to 69% — a 5% surge in the past two days.

This followed sharp trimming of long positions from 79% to 64% between mid-July and early August. In other words, some large players appeared to be convinced that XRP’s bottom was in.

Source: CoinGlass

Overall, XRP has dropped over 20% amid Bitcoin’s pullback. Although BTC was yet to confirm a price bottom above $110K amid macro uncertainty, some traders were already buying the XRP dip.

However, a robust XRP support could be established at $2.48 if $2.8 cracks.